🔑 Key Takeaways
- Industrial estate operators across Indonesia are pushing for national electricity grid reliability as a top priority in 2026.
- Persistent power outages and voltage fluctuations threaten operational continuity and deter new investment in the manufacturing sector.
- PLN and the government are urged to accelerate infrastructure modernization, renewable energy integration, and smart grid implementation to ensure a stable power supply.
JAKARTA, January 16, 2026 – The Association of Industrial Estate Operators (APKINDO) has once again reiterated its urgent plea to the government and PT Perusahaan Listrik Negara (Persero) or PLN to significantly strengthen the reliability of the national electricity system. This demand, which has been a prominent concern throughout 2025, has become even more pressing in early 2026 amidst ambitious industrial growth targets and efforts to attract foreign direct investment (FDI).
Threat to Operational Continuity
APKINDO Chairman, Mr. Hadi Prasetyo, stated at a Jakarta press conference that disruptions to electricity supply, including sudden blackouts and voltage fluctuations, cause substantial losses for industrial players. “Modern production machinery is extremely sensitive to power disturbances. A single outage can lead to losses ranging from millions to billions of rupiah, not only from damaged products but also from lost production time and potential equipment damage,” explained Mr. Hadi.
According to APKINDO's internal data for Q4 2025, the average frequency of outages in several strategic industrial estates still exceeds international tolerance thresholds, hindering companies' ability to meet production targets and compete in global markets. The manufacturing sector, particularly high-tech and automotive industries, relies heavily on a stable 24/7 power supply.
A Fragile Investment Climate
Beyond operational continuity, electricity reliability is also a crucial factor in investment decisions. Investors, both domestic and international, consider infrastructure stability as a primary prerequisite before committing capital. “We cannot expect to attract substantial investments if our guarantee of electricity supply remains questionable. This is a deal-breaker that could prevent Indonesia from achieving its digital economy and industrial downstreaming targets in 2026 and beyond,” commented Dr. Budi Santoso, Senior Economist from Gadjah Mada University, when asked for his views.
The latest global investment climate survey report, released in late 2025, indicates that despite Indonesia's large market potential and abundant resources, fundamental infrastructure issues like electricity remain one of the primary deterrents.
PLN and Government's Strategic Steps in 2026
In response to these demands, PLN, through its CEO, Mr. Darmawan Prasodjo, has reaffirmed its commitment to continuously improve system reliability. “We recognize the importance of electricity for the industrial sector. Throughout 2025, we have implemented several grid strengthening programs, including substation modernization, digitalization of control systems, and acceleration of new transmission line construction. For 2026, our focus is on further integration of renewable energy into the national grid, as well as the development of smart grids in priority industrial zones,” Mr. Darmawan stated.
The government has also pledged to support PLN through fiscal policies and regulations that facilitate land acquisition for electricity infrastructure projects. The Ministry of Energy and Mineral Resources (ESDM) is also promoting the development of rooftop solar power plants in industrial estates to support energy independence and reduce the burden on the main grid.
The Future of Industry and Clean Energy
Strengthening electricity reliability in 2026 is not just about keeping the lights on; it's about building a solid foundation for sustainable economic growth and a clean energy transition. With a stable and sustainable electricity supply, Indonesia can further solidify its position as a leading manufacturing investment destination in Southeast Asia.
Frequently Asked Questions (FAQ)
- Why is electricity reliability so critical for industrial estates?
- Reliable electricity is crucial for maintaining production continuity, preventing damage to sensitive equipment, minimizing financial losses from outages, meeting production targets, and attracting new investments.
- What specific improvements are industrial players requesting?
- Industrial players are requesting reduced frequency and duration of outages, voltage stabilization, and investments in grid modernization and smart grid technology.
- How does unreliable electricity impact foreign investment?
- Unreliable electricity creates operational uncertainty, increases business risks, and significantly reduces Indonesia's attractiveness as an investment location for foreign investors seeking infrastructure stability.
