Investing in Indonesia’s Blue-Green Future
Hydropower as a Strategic Pathway to Sustainable Growth
Pembangunan Energi Air sebagai Jalan Menuju Pertumbuhan Berkelanjutan
1. Introduction
Indonesia, the world’s largest archipelago with over 17,000 islands, is endowed with vast freshwater resources — from highland rivers to tropical basins. The country’s total hydropower potential is estimated at 75 GW, yet only 6.5 GW (8%) has been utilized. This represents a massive untapped market for global investors seeking stable and sustainable energy returns.
2. Natural Potential and Government Support / Potensi Alam dan Dukungan Pemerintah
Hydropower potential is widely distributed across the islands:
Sumatra & Kalimantan: Large rivers such as Kapuas, Mahakam, Batanghari, Musi.
Sulawesi & Papua: High-altitude terrain with consistent flow and rainfall.
Java & Bali: Micro and mini-hydro for distributed rural electrification.
The Government of Indonesia, through Presidential Regulation No. 112/2022, promotes renewable energy with:
Competitive feed-in tariffs.
Green financing from PT SMI, BPDLH, ADB, AIIB, and JICA.
Streamlined Online Single Submission (OSS-RBA).
Power Purchase Agreement (PPA) up to 30 years with PLN.
3. Investment Opportunities / Peluang Investasi
Three key investment models for hydropower in Indonesia:
1.Independent Power Producer (IPP) — Build, operate, and sell electricity to PLN.
2.Public-Private Partnership (PPP) — Joint project with local governments or SOEs.
3.Green Bonds & Carbon Credit Mechanism — Generate tradable emission credits.
Average cost: USD 1.5–2 million per MW
Expected IRR: 12–18%
Payback period: 7–9 years
4. Economic and Social Impact / Dampak Ekonomi dan Sosial
English:
Hydropower brings inclusive and sustainable development:
Enhances national energy security.
Creates up to 1,000 jobs per project.
Supports agricultural irrigation and aquaculture.
Enables green industrial zones with clean electricity.
5. Conclusion / Kesimpulan
Indonesia stands at the forefront of Asia’s green energy transformation. Hydropower is not only an investment in clean energy — it’s an investment in resilience, economic equality, and environmental balance.
Appendix / Lampiran A. Financial Projection — Hydropower Investment Model (Indicative) (Proyeksi Finansial – Model Investasi PLTA (Indikatif))
Interpretation / Interpretasi:
Hydropower projects in Indonesia deliver long-term stability with attractive returns and measurable climate impact.
Proyek PLTA di Indonesia memberikan stabilitas jangka panjang dengan tingkat pengembalian menarik serta dampak nyata terhadap penurunan emisi karbon.
B. National Hydropower Potential Map (Descriptive Overview)
(Peta Potensi Nasional PLTA — Deskripsi)
Sumatra Region: Estimated 22 GW potential, anchored by Asahan, Musi, and
Batanghari river basins.
Kalimantan Region: 20 GW potential, with Kapuas and Mahakam as key corridors for future development.
Sulawesi Region: 10 GW, supported by mountainous terrain with stable hydrology.
Java-Bali Region: 5 GW, mainly for mini and micro-hydro potential.
Papua Region: 18 GW, highly strategic for green industrial clusters and interconnection plans.
C. Strategic Outlook / Prospek Strategis
Indonesia targets 23% renewable energy mix by 2025 and Net Zero Emission by 2060.
Hydropower serves as the backbone for hybrid systems integrating solar, wind, and battery storage.
Opportunities for joint ventures with local EPC, BUMN, and international climate funds are open.
Company Profile / Profil Perusahaan
PT. SINTECH Indonesia Power
Engineering • Renewable Energy • Smart Infrastructure
PT. SINTECH Indonesia Power is a national engineering and renewable energy company specializing in the design, construction, and operation of hydropower, solar PV, wind power, and BESS systems — committed to Quality, Sustainability, and a Green Future.
