Achieving a sustainable and efficient energy transition in Indonesia: a power sector restructuring road map

To assure financial and environmental sustainability for Indonesia’s power sector, this report proposes restructuring PLN, the country’s State Electricity Corporation, and details innovative reforms for stronger governance and regulation. As Indonesia’s power sector must resolve major issues of slow decarbonisation, financial viability, and unreliable supply, this report presents a comprehensive vision for its reform. Reviewing international approaches to electric utility restructuring, the study analyses challenges facing the country’s power sector, explores options for restructuring PLN, and identifies an optimal framework. Proposing steps to achieve this reformed structure, the report recommends a new revenue model for PLN based on proven international practice.