What is the Status of the 35,000 Megawatt Electricity Project?

President Joko Widodo (Jokowi) launched the 35,000 megawatt (MW) power plant development program in May 2015. This program is one of the targets of Nawacita, namely realizing economic independence by driving strategic sectors, especially energy sovereignty.

Previously, the procurement of the 35,000 MW electricity program was targeted for completion in 2019. However, until June 2021, 0.7 gigawatts (GW) or 700 MW of power plants were still in the planning stage.

Based on PLN data, here is a breakdown of the progress of the 35,000 MW electricity project until June 2021:

* Operational: 10,600 MW
* Under Construction: 17,690 MW
* Contracted/PPA: 6,060 MW
* Procurement: 800 MW
* Planning: 700 MW

According to the Electricity Supply Business Plan (RUPTL) 2021-2030, after asset revaluation, the financial capacity of the State Electricity Company (PLN) has increased by approximately 65%. With this financial capacity, PLN is confident that it can build power plants with a capacity of 29% of the total 35,000 MW capacity.

The power plant development program, which has been planned since 2015, has largely entered the construction phase and will soon be operational. However, some parties assess that PLN's oversupply level is potentially increasing because its electricity supply is increasing, but demand remains low.

Low electricity demand is further suppressed by the contraction of the Indonesian economy in 2020 due to the Covid-19 pandemic. According to PLN data, electricity sales in 2020 contracted by 0.79%.

Thus, in the RUPTL 2021-2030, PLN projects electricity growth to be at 4.9% per year. This figure is lower than the previous projection, where electricity growth was predicted to be 6.4% per year in the RUPTL 2019-2028.