State-Owned Enterprises Minister Erick Thohir plans to merge Pertamina, PLN, and Star Energy to accelerate the energy transition and develop renewable energy power plants in Indonesia.
"We have three geothermal companies: Pertamina, PLN, and Star Energy under the Ministry of Finance. I want to merge them into a single entity. We want to be like Pertamina Geothermal Energy so we have access to funding through going public," said Erick at the Special Event Road to G20 at the IPB International Convention Center in Bogor, West Java, on Tuesday (25/10/2022).
According to PLN's report, in 2021 Indonesia had 421 renewable energy power plants, with the following breakdown:
* Hydroelectric Power Plants (PLTA): 162 units
* Mini-hydro Power Plants (PLTM): 12 units
* Micro-hydro Power Plants (PLTMH): 72 units
* Geothermal Power Plants (PLTP): 18 units
* Solar Power Plants (PLTS): 150 units
* Wind Power Plants (PLTB): 5 units
* Biomass Power Plants (PLTBm): 2 units
However, even though the number of power plants reached hundreds, the cumulative installed capacity of Indonesia's renewable energy power plants was only 4,189 megawatts (MW) in 2021.
This amounts to only 6.5% of the total installed capacity of national power plants, which reached 64,553 MW in the same period.
These renewable energy power plants are spread across PLN's Regional Main Units (UIW), Generation Main Units (UIK), Generation and Distribution Main Units (UIKL), and Regional Main Units (UID) in various provinces.
According to PLN's report, in 2021, the most renewable energy power plants were located in the UIW Papua and West Papua, namely 77 units. These consist of 17 PLTA units and 60 PLTS units.
However, all renewable energy power plants in Papua and West Papua only have an installed capacity of 35.5 MW. This figure is relatively small and accounts for only 4.5% of the total installed capacity of power plants in Papua and West Papua, which reached 793 MW.
This shows that the utilization of renewable energy in Indonesia is still very minimal. According to the International Renewable Energy Agency (IRENA), the biggest obstacle in this sector is the lack of investment.
"Significant barriers to driving Indonesia's energy transition are funding and investment. Financing sources need to be broadened and local financing capacity needs to be increased," said IRENA in its Indonesia Energy Transition Outlook report released in October 2022.