To improve services and electrification ratio targets, the government launched a 35,000 Megawatt (MW) power plant program in 2015-2019. However, after revision, the total capacity increased to 37,800 MW.
Not all of this capacity could be implemented by PT Perusahaan Listrik Negara (Persero)/PLN alone. It required the involvement of private companies/Independent Power Producers (IPPs). Based on data from the Ministry of Energy and Mineral Resources (ESDM), the contribution from the state-owned electricity company reached 11,200 MW, or less than 30 percent of the total capacity. The remainder came from private companies.
Based on PLN data, the funding needs for electricity in 2015-2019 reached Rp 1,250 trillion. This amount includes the construction of 35 GW of power plants, 108,000 MVA substations, and 46,760 km of transmission lines. Due to the enormous funding requirements, the national electricity development necessitates the involvement of private sector partners.