JAKARTA — PT PLN (Persero), Indonesia’s state-owned electricity provider, has reported robust financial results as of October 2024, with operating profits reaching IDR 50.1 trillion. This marks a 25.3% increase compared to the target set in the company’s Work Plan and Budget (RKAP) of IDR 40 trillion, driven by increased electricity consumption across its customer base.
The company’s EBITDA for the period stood at IDR 94.7 trillion, surpassing the RKAP target of IDR 80.9 trillion by 17%. Additionally, PLN’s operating cash flow surged to IDR 32.3 trillion, a remarkable 78.7% above the projected IDR 18.1 trillion.
“This performance reflects our continuous efforts to drive electricity sales growth and enhance financial resilience,” said Darmawan Prasodjo, PLN’s President Director, during a parliamentary hearing on Monday. “With one month remaining in 2024, we forecast electricity sales to reach 307.23 terawatt-hours (TWh), exceeding our original target of 299.99 TWh.”
As of October 2024, electricity sales increased by 16.36 TWh or 6.88%, outperforming the RKAP target by 6.9 TWh. This growth aligns with PLN’s commitment to support Indonesia’s economic development while advancing its energy transition agenda.
Driving the Energy Transition
PLN has also reaffirmed its commitment to achieving net-zero emissions by 2060. According to Suroso Isnandar, PLN’s Risk Management Director, the company has implemented a roadmap for energy transition in collaboration with the government. This ambitious strategy includes scaling up renewable energy capacity and gradually phasing down coal usage.
“Our green energy roadmap, as outlined in the 2021-2030 Electricity Supply Business Plan (RUPTL), is the most environmentally friendly plan in our history,” said Isnandar. “We aim to add 21 gigawatts (GW) of renewable energy capacity by 2030, accounting for 51.6% of total new capacity.”
Key components of PLN’s strategy include:
- Accelerated Renewable Energy Development (ARED): A government-supported initiative to reduce reliance on coal-fired power plants (PLTU) through phased coal reductions. By 2040, 75% of new power generation will be based on renewable energy sources, while 25% will utilize gas.
- Renewable Energy Integration: Efforts to incorporate solar, wind, and hydroelectric power into the grid to meet future energy demand sustainably.
- Coal Phase-Down: A gradual decrease in coal-based energy production, aligning with global trends to combat climate change.
Expanding Electricity Sales and Efficiency
PLN has set a record-breaking electricity sales target of 307.23 TWh for 2024, significantly higher than the realized sales of 288.44 TWh in 2023. The company attributes this growth to increasing demand from industrial and commercial sectors, coupled with efficiency measures to optimize distribution.
“This year’s performance has exceeded expectations, demonstrating the resilience of Indonesia’s electricity market and the effectiveness of our operational strategies,” added Prasodjo. “Our focus on customer-centric solutions and technological innovation continues to deliver measurable results.”
Strategic Investments in Green Energy
To further its decarbonization goals, PLN has prioritized investments in renewable energy infrastructure. The company’s initiatives include:
- Solar and Wind Projects: Accelerating the development of photovoltaic and wind power plants to reduce dependency on fossil fuels.
- Energy Storage Solutions: Implementing advanced battery storage systems to enhance grid reliability.
- Hydropower Expansion: Boosting the capacity of hydroelectric plants to leverage Indonesia’s abundant water resources.
These efforts are supported by international partnerships and financing schemes designed to attract global investors to Indonesia’s renewable energy sector.
The Indonesian government has been instrumental in supporting PLN’s transition to renewable energy. Policies under the RUPTL framework aim to strike a balance between economic growth and environmental sustainability.
“PLN’s strategy aligns with national priorities to achieve energy security while addressing climate change,” said a government representative. “The accelerated development of renewable energy reflects Indonesia’s commitment to international climate agreements.”
With robust financial performance and a clear roadmap for energy transition, PLN is well-positioned to lead Indonesia’s journey toward a greener future. The company’s initiatives not only support its sustainability goals but also bolster its financial stability.
“We remain committed to delivering value to our stakeholders by balancing profitability with environmental responsibility,” concluded Prasodjo. “As we move forward, PLN will continue to innovate and adapt to meet the evolving needs of Indonesia’s energy landscape.”