Indonesia targets renewable energy expansion and data center power growth

At the Electricity Connect 2026 forum, Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, outlined several strategic initiatives to bolster the nation's energy sector and digital infrastructure.

To support the 100 GW solar power project initiated by President Prabowo Subianto, the government is considering new regulations to allow direct appointments of technologically and financially capable companies, aiming to bypass lengthy bureaucratic tender processes. Bahlil also invited investors to develop massive hydroelectric projects, specifically highlighting the Mamberamo River in Papua with a 23 GW potential and the Kayan River in Kalimantan with 12 GW.

Regarding the digital economy, PT PLN (Persero) is preparing for a significant surge in electricity demand from the data center sector, which is projected to reach approximately 25,297 MW by 2034 due to AI and digital growth. PLN is working to strengthen grid infrastructure, substations, and generation capacity to meet this need, noting that while most current data centers are in the Java-Madura-Bali region, expansion is moving toward Sumatra, Kalimantan, and Sulawesi.

Additionally, Bahlil addressed fuel subsidy issues, urging high-income individuals with luxury vehicles to refrain from using subsidized fuel, citing instances where non-subsidized consumers shifted to subsidized fuel due to rising global oil prices.