Company Information
Name: PT Perusahaan Listrik Negara (Persero) (PLN)
Market: Indonesia
Installed capacity (as of 2023): ¹64.2 GW (Thermal), 8.8 GW (Non-thermal)
Climate-related targets committed: Long-term: Net zero CO₂ emissions by 2060 Medium-term: – Increase renewable capacity by 20.9 GW by 2030 – Committed to supporting the Indonesian Government’s programs to achieve the Nationally Determined Contribution (NDC) by 2030²
Engagement Updates
PLN is a state-owned enterprise in Indonesia and one of Southeast Asia’s largest electric utility companies. Continuing with productive engagement from the previous year, the PLN engagement group had several focused discussions on the company’s decarbonization strategy and early retirement of its coal fired power plants.
PLN has aspired to achieve net zero emissions by 2060 and increase its renewable energy capacity to 20.9 GW by 2030. Based on the company’s most recent sustainability report, PLN’s efforts to achieve its climate targets include reducing its generation capacity from coal, such as canceling coal fired power plants projects, totaling 13.3 GW and 1.3 GW coal fired power plants that already signed a power purchase agreement (PPA).
Last year, PLN stated that financing the energy transition, including the transmission and distribution network and grid, is a major roadblock in shifting from coal to renewable energy. In June 2024, Indonesian media outlets reported that PLN needed USD25 billion to build the renewable energy grid.³ It has secured a USD581.5 million lending facility from a consortium of the World Bank, Canada Clean Energy & Forest Climate Facility and Clean Technology Fund, for increased access to electrification in the country, energy transition programs, and the company’s digitization.⁴
Investors look forward to continuing to engage PLN on retiring its coal assets early and exploring potential structures for the coal phaseout transaction to propose to the company