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Indonesian president instructs transformation of power utility

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Indonesian president instructs transformation of power utility

Indonesia’s President Prabowo Subianto has ordered a comprehensive overhaul of state-owned power utility PT PLN.

The president met with government ministers and PLN representatives last week to discuss a transformation focused on increased efficiency and an accelerated rollout of 100 GW of solar, according to a media statement.

The Indonesian government officially launched its flagship solar program in August, with President Subianto setting a target of deploying the planned 100 GW within the next three years.

After last week’s meeting, Rosan Roeslani, head of the country’s investment coordinating board, said President Prabowo requested PLN’s transformation focus on improving the company’s business model. Roeslani added a transformation plan is now being prepared before it is presented to the Head of State for follow up.

“[We] will certainly sit down with the PLN team to ensure this transformation can be carried out comprehensively, thereby reducing subsidies and increasing efficiency and productivity at PLN,” Roeslani said.

The announcement coincides with a change of leadership at PLN with Suroso Isnandar, who also attended the meeting, taking over as president director of the utility.

In a statement sent to pv magazine, the Institute for Essential Services Reform (IESR) says PLN’s new leadership will be tasked with making it “a public utility company that is financially healthy, efficient, able to ensure reliable and affordable electricity supply, and a driver of Indonesia’s energy transition.”

The think tank explained PLN has been facing a series of pressures, including supply disruptions and power outages in a number of regions this year, as well as a heavy reliance on government subsidies and compensation.


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