Indonesian industrial green energy transition

Indonesian industrial and state-owned sectors are implementing various green energy initiatives to support decarbonization and operational efficiency.

In the industrial sector, companies are adopting rooftop solar photovoltaic (PLTS) systems to enhance operational efficiency and meet global green branding standards. Integrating solar power allows factories to synchronize peak production hours with peak sunlight intensity, reducing reliance on the public grid and lowering electricity costs.

In Purwakarta, West Java, PT PLN (Persero) is facilitating an energy transition for PT Indorama Synthetics Tbk and PT Indorama Polychem Indonesia Tbk. PLN is constructing a 150 kV high-voltage substation and transmission lines, which are expected to be operational by early 2027. Once this infrastructure is complete, these companies will transition from their captive coal-fired power plants—totaling 62 MW in capacity—to PLN’s electricity system.

Simultaneously, state-owned enterprises are pursuing diverse sustainability projects. At the Tidore Steam Power Plant, PLN is utilizing biomass co-firing with local resources like kaliandra trees to supplement fossil fuel use. Additionally, Pelindo Regional 2 in Bengkulu is transitioning crane operations from diesel to electricity as part of a ‘Green Port’ initiative to reduce emissions and optimize costs.