Jakarta (VNA) – The Indonesian government plans to reduce electricity subsidies without burdening the public with tariff increases, particularly via the development of solar power plants as well as the utilisation of other new and renewable energy which are more efficient, said Minister of Finance Purbaya Yudhi Sadewa.
Speaking after a recent meeting with the Indonesian President in Hambalang, Purbaya said there was a discussion about the reduction of electricity subsidies by using solar power plants, but the price is still quite high. The government is looking for new technology so that the production cost is close to the current low price, so that the subsidy can be reduced or even eliminated.
He mentioned that the process of cutting electricity subsidies by utilising new renewable energy cannot be instant. In the initial stage, the government will calculate the initial investment needs to ensure that domestic solar power technology, solar panels, and battery production are truly efficient.
The electricity subsidy for 2026 is set at 101.72 trillion IDR (6.1 billion USD), an increase from the 2025 allocation of 87.72 trillion IDR./.
Indonesia affirms role as global geothermal hub
Addressing the 11th Indonesia International Geothermal Convention and Exhibition (IIGCE) 2025, Lahadalia said Indonesia’s installed geothermal capacity stands at 2,744 MW, while the US leads with 3,937 MW. The archipelago’s total geothermal potential and reserves are estimated at 23,742 MW.
