Indonesia Power Sector Finance Dashboard

Between 2019 and 2023, Indonesia's power sector saw total reported investments of USD 38.02 billion, with fossil fuels (FF) dominating at 62% of the share. The report highlights a significant gap in 'unreported' investment in captive coal-fired power plants (CFPPs), estimated at USD 10.63 billion. While renewable energy (RE) investment reached USD 8.85 billion, it remains concentrated in baseload sources like hydropower and geothermal. Private international financial institutions are the primary drivers of fossil fuel investment, whereas RE is increasingly supported by domestic private sources. Analysis of PLN reveals that coal plants account for 46% of annual operating costs, and PLN-owned solar plants suffer from severe inefficiency with a capacity factor of only 4% compared to a 16% benchmark.

• Indonesia's power sector requires USD 246 billion in total investment, or USD 19 billion annually, to meet its 2030 climate targets. Renewable energy represents the largest share of this need, requiring approximately USD 118.5 billion between 2018 and 2030, which is 48% of the total requirement.
• Total reported investment in the power sector from 2019 to 2023 was USD 38.02 billion, but an estimated USD 10.63 billion in 'unreported' investment flowed into captive coal-fired power plants (CFPPs). Fossil fuel technologies accounted for 62% of total investment, while renewable energy accounted for 23% (USD 8.85 billion).
• Private financial institutions provided 73.72% of power sector investment, with 59.25% of their funding directed toward fossil fuels. International private financial institutions dominated fossil fuel investment, contributing USD 7.2 billion (approximately 55% of fossil investments).
• Renewable energy investment is heavily concentrated in baseload technologies, with geothermal and hydropower accounting for 72% of RE financing. Hydropower saw the highest investment at USD 4.8 billion. Solar and wind represent only 11% of RE investments.
• Captive power investments, which account for 43% of power sector investment, are primarily driven by Indonesia's 'down-streaming' policy for nickel processing. This has led to an increase in captive fossil-fuel plants, as a Presidential Regulation allows exceptions for the industrial sector.
• Within PLN's owned power plants, coal accounts for 65% of annual production and 46% of annual operating costs. The operational cost of coal is artificially lowered by the government's Domestic Market Obligation (DMO); if adjusted to export market prices, the cost would double from IDR 0.6k/kWh to IDR 1.2/kWh.
• PLN-owned solar plants are highly inefficient, with a capacity factor of 4%, significantly lower than the 17% achieved by Independent Power Producers (IPPs) and the 16% regional benchmark. This low performance increases the unit cost of electricity produced.

APA

Bimo, R., Putri, T., Aulia, M., & Yusuf, B. (2025). Indonesia Power Sector Finance Dashboard. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Indonesia-Power-Sector-Report-2025.pdf

Chicago

Bimo, Ravi, Tunjung Putri, Muhammad Aulia, and Berliana Yusuf. Indonesia Power Sector Finance Dashboard. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Indonesia-Power-Sector-Report-2025.pdf.

Wikipedia

{{cite report |last1=Bimo |first1=Ravi |last2=Putri |first2=Tunjung |last3=Aulia |first3=Muhammad |last4=Yusuf |first4=Berliana |title=Indonesia Power Sector Finance Dashboard |publisher=Climate Policy Initiative |date=October 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Indonesia-Power-Sector-Report-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bimo2025indonesia, author = {Bimo, Ravi and Putri, Tunjung and Aulia, Muhammad and Yusuf, Berliana}, title = {{Indonesia Power Sector Finance Dashboard}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Indonesia-Power-Sector-Report-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }