TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said that the majority or 60 percent of the construction of power plants in the future will be handed over to the private sector. He conveyed this at the inauguration of the Jatigede Hydroelectric Power Plant (PLTA), Sumedang, West Java, on Monday, January 20, 2025.

The 2024-2034 Electricity Supply Business Plan (RUPTL), the government is targeting an additional electricity capacity of 71 gigawatts (GW). "We are also encouraging that new power plants that are developed will be given a large portion to the private sector or IPP (Independent Power Producer)," said Bahlil when met in Sumedang, Monday, January 20, 2025.

Bahlil said that the portion that will be given to the private sector is relatively large. "We will hand over approximately 60 percent to the private sector," he said.

Although large, the portion will be handed over to the private sector in line with the government's commitment. "It is not the private sector that makes additional movements outside of what the government does," said the Golkar Party General Chair.

In front of the President, Bahlil also reminded his party cadres to support government programs. "This is important, especially Golkar Party cadres. Hopefully other parties can also follow what we are directing," he said.

IPP is a special purpose company (SPC) formed by a sponsor or consortium to implement a power purchase agreement with PLN and develop, build, own, and operate power plants.

All funding for this power plant project is borne by the private sector. Through a sales and purchase contract, the electrical energy generated from this power plant is distributed into the PLN electricity network system.

Minister of State-Owned Enterprises (BUMN) Erick Thohir previously said that the discussion of the 2025-2034 RUPTL adopted a more environmentally friendly, new, and renewable energy transition mechanism for future generations. "We are targeting an increase in electricity capacity of 71 GW, with 70 percent being New Renewable Energy," he said in an official statement on January 14, 2025.

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