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Indonesia’s sovereign wealth fund Danantara plans to support state utility PLN to expand renewable energy projects. (Photo: Wikipedia Commons)
Indonesia’s sovereign wealth fund Danantara on Dec. 22 signed a preliminary agreement with state-owned utility Perusahaan Listrik Negara (PLN), committing to provide funding support and assist in the development of renewable power projects.
Government data show that Indonesia’s renewable energy share had fallen short of its targets as of October 2025, with experts citing continued policy support for coal and insufficient incentives as key barriers to renewable energy growth.
Danantara steps in to accelerate PLN’s renewable rollout
Danantara and PLN signed a Head of Agreement (HoA) that sets out a cooperation framework for Danantara to invest in PLN subsidiaries developing renewable power plants. According to an official statement, the scale, structure and timeline of the cooperation will be determined following the completion of due diligence and will align with prevailing government regulations and policy directions.
