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Indonesia

Indonesia is nearly fully electrified (99.4 %) but its grid still runs largely on coal. Hydropower — 7.1 GW installed against a 95 GW potential (RUKN 2025) — is the largest renewable pillar, and the RUPTL 2025-2034 plan adds 42.1 GW of renewables including 11.7 GW of hydro, much of it run-of-river and mini-hydro on remote islands.

Key data

Electricity access (WDI)99.4 % (2023)
Installed capacity≈7.1 GW hydro installed (≈7 % of national fleet)
Hydropower potential95 GW total; 94.6 GW run-of-river (RUKN 2025)
Utility / grid operatorPLN (Perusahaan Listrik Negara)
Key factRUPTL 2025-2034: +42.1 GW renewables planned, incl. 11.7 GW hydro

Data: World Bank World Development Indicators (EG.ELC.ACCS.ZS, 2023), CC BY 4.0 · IHA country profiles.

Hydropower & mini-grid opportunities

Geography drives the opportunity: Papua (22.4 GW hydro potential), Kalimantan (21.6 GW) and Sumatra (15.6 GW) cannot be served economically by grid extension alone. Community-scale and industrial mini-grids — hydro, with solar-diesel hybridisation — are the commercial template for these markets.

Local-content rules shape procurement: MEMR Decree 191/2024 requires 23-45 % local content for hydro plants depending on size. TC × HIER works with Indonesian partners, pairing imported core turbine technology with in-country fabrication and services to meet thresholds project by project.

Policy & financing updates

  • RUKN 2025 recognises 95 GW of hydropower potential; renewables targeted at 23 % of the mix (2025) rising to 31 % (2030).
  • Coal moratorium in force since 2022 (with captive-plant exemptions) — new capacity shifts to renewables.
  • Hydro PPA ceiling prices set by Presidential Regulation 112/2022.

FAQ

Why mini-hydro in a country with 99 % electrification?

Because connection is not the same as reliability: remote islands run on costly diesel. Mini-hydro and hybrids cut cost and outages while advancing decarbonisation targets.

What are Indonesia's local-content rules?

MEMR Decree 191.K/EK.01/MEM.E/2024 requires 23-45 % local content for hydro plants depending on capacity — plan supplier partnerships early.

Can TC × HIER supply compliant equipment?

Yes — we combine imported turbine technology with in-country fabrication and services through local partners, matching decree thresholds project by project.

Sources

A project, a site, drawings to discuss? Talk to us — reply within 48 hours.

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