Indonesia advances energy transition via gas and renewables

Indonesia is advancing several energy transition and infrastructure projects focused on renewable energy and domestic gas supply.

PT PLN Energi Primer Indonesia successfully completed the Gas-In Commissioning of the West Natuna Transportation System (WNTS)–Pemping subsea pipeline. This milestone is intended to facilitate the flow of Natuna gas to power plants in Batam, Central Sumatra, and West Java to support domestic electricity reliability.

In the renewable sector, solar power (PLTS) initiatives are showing measurable results. In Banten Province, the use of rooftop solar in government buildings has saved approximately Rp197 million in electricity costs through September 2026. Additionally, Pertamina is optimizing a 3.77 MWp solar plant at its Dumai refinery and has implemented a 1 MWp solar system with battery storage on Pulau Sembur to provide 24-hour electricity to local households and fishermen.

Furthering the transition, PT Perusahaan Gas Negara (PGN) is collaborating with Toyota Tsusho Indonesia and KIS Biofuels Indonesia to develop a biomethane plant in South Sumatra. The facility will utilize palm oil mill waste to produce approximately 150,000 MMBTU of biomethane annually, which PGN will transport to industrial users. Meanwhile, North Sumatra authorities, PLN, and the Ministry of Energy and Mineral Resources are working to accelerate rural electrification programs to reach 100 percent coverage.