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The Indonesian archipelago consists of 17,000 islands, of which around 6,000 are inhabited. Hardly anywhere in the world is it likely to be more difficult to set up a nationwide power supply. However, enormous things were achieved in the process: according to statistics from the State Electricity Company (PLN), 99 percent of the Indonesian population now have electricity. 

The regional demand for electricity is unequally distributed. 60 percent of the population live in Java and Bali, and almost the entire manufacturing industry is based there. Three-quarters of the electricity required in the entire archipelago is generated in these regions. On the other hand, Sumatra, Kalimantan and Sulawesi are home to large palm oil plantations, coal mines, ore smelters and steel works. There, diesel, petrol and coal are still covering a larger proportion of the energy requirement.  

The Java-Bali-Grid is accordingly well developed, there are hardly any isolated networks. The power grid on Sumatra is also largely integrated, although there are still no connections to many of the offshore islands. On Kalimantan and Sulawesi, the power grids of the urban areas are only partially connected. In the less-developed Nusa Tenggara (Lesser Sunda Islands), the Moluccas Islands and Papua, there are hundreds of isolated power grids, many of which are powered by diesel generators. However, due to network integration, their use has been significantly reduced in recent years. 

There are no transmission lines between the main islands of Java, Sumatra, Kalimantan, Sulawesi and Papua. There are repeated reports about plans to establish them. But the ten-year plan of the Ministry of Energy and Natural Resources (ESDM) is cautious, because Java and Sumatra both have overcapacities in electricity generation. In addition, the low demand on the other islands can be served comparatively easily with a few power plants and generators. 

Continuous network expansion 

However, as in other emerging countries, one challenge in Indonesia's power supply is the strong increase in demand. With annual economic growth of more than 5 percent, per capita electricity consumption doubles within around 12 to 15 years. If more manufacturing industry can be located, this would happen even faster. 

This makes further network expansion necessary. According to plans by the Ministry of Energy, almost 19,000 kilometers of power lines are to be laid between 2020 and 2024 alone, around half of them in Sumatra. The vast majority of transmission lines are overhead lines with a voltage of 150 kilovolts (kV). 

Siemens, which has been active in the archipelago (formerly a Dutch colony) since the 1860s, is a permanent partner for the expansion of the Indonesian power grid. Siemens also manufactures corresponding electronic equipment on site. 

Renewables remain stagnant for the time being 

About two-thirds of the electricity generated in Indonesia comes from coal, which is available in large quantities. Renewable energies, on the other hand, are still under development. Their share has reached around 13 percent, with hydropower being the largest segment. Photovoltaic and wind power, which require a sophisticated network architecture due to their volatility, have started to grow througha few small projects. In particular, the use of photovoltaics is expected to expand through solar roof programs and the construction of some larger plants.  

As for transnational power transmission grids to neighboring countries, the only existing connection on Borneo runs from the Malaysian state of Sarawak to West Kalimantan. According to ESDM, they have imported between 1.0 terawatt hours and 1.7 terawatt hours of hydroelectric power annually in recent years. According to the UN Comtrade, Indonesia paid between 60 million and 130 million US dollars for this. 

Another interconnector on Borneo is planned between the Malaysian state of Sabah and East Kalimantan. In addition, as part of the ASEAN Grid Initiative, a connection is to be established between the Batam free trade zone and Singapore, which is within sight, and another one between the main island of Sumatra and Singapore. In addition, the German planning and consulting company Fichtner is working on a feasibility study on an interconnector from Sumatra through the Strait of Malacca to the Malaysian Peninsula. Concrete timetables for these projects are not known. 

At the end of 2020, project plans for large solar parks in Batam, which should supply Singapore with green electricity, made headlines. Local authorities have already signed corresponding declarations of intent. However, a submarine cable would first have to be laid through the Strait of Singapore.  

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