PLN New Subholdings and Efforts to Support Electric Vehicle Acceleration

PLN New Subholdings and Efforts to Support Electric Vehicle Acceleration

The Ministry of State-Owned Enterprises officially launched the Holding Subholding of PT PLN on Wednesday, September 21. PLN’s previously dispersed assets will now be consolidated, business processes for power plant management will be simplified, and asset utilization will be optimized. Following are the 4 PLN Subholdings:

1. PLN Primary Energy Indonesia, tasked with procuring coal, gas, and fuel as a source of energy for electricity generation, as well as ensuring the source of primary energy supply sourced from NRE.
2. PLN Indonesia Power, tasked with regulating and supervising electricity generation in Indonesia.
3. PLN Nusantara Power, expected to become the largest power generation company in Southeast Asia.
4. PLN ICON Plus, accounted for business development and innovation for future needs, including EV charging and marketplace business.

Meanwhile, PLN as Holding will focus on more strategic matters, in managing and developing business portfolios. The electricity transmission, distribution and marketing business lines are also managed by PLN holding to improve customer service. Minister of State-Owned Enterprises, Erick Thohir, said the establishment of Holding and Subholding for PLN shall have a positive impact on Indonesia’s efforts to take part in the global supply chain amid the energy transition momentum. “If we are not part of the world’s supply chain, we are locked out. If the electricity is not green, our industry will not be accepted in the global market,” said Erick, who also reshuffled PLN’s organizational structure.

Energy Watch Executive Director, Mamit Setiawan, assessed that PLN’s dependence on independent power producers (IPP) will decrease after the establishment of the holding and subholdings. “Now with asset consolidation, PLN will be responsible for finding new opportunities to supply electricity,” said Mamit. 

PLN also stated its readiness to support the Indonesian Government’s program in accelerating EVs as government official vehicles, through the following programs:

1. Stimulate investment in charging stations, either independently or in cooperation with SOE or private sectors. As of September 14, there were 150 PLN charging stations in 117 locations.
2. EV Home Charging in collaboration with Brand Holder Sole Agents who sell electric cars and provide 30% discounts for home charging users from 10 pm to 5 am and provide special prices for residential consumers requesting additional power. 
3. Collaborate with other SOEs in building an end-to-end EV Battery supply chain through the Indonesia Battery Corporation (IBC), which consists of PLN, MIND ID, Antam and Pertamina.
4. Expand Battery Exchange Stations for two-wheeled vehicles. Currently, PLN has 5 exchange stations in Jakarta and 2 in Surabaya. 
5. Collaborate with the Association of State-Owned Banks (Himbara) to provide credit facilities for EV ownership and the development of charging stations in the country.
6. PLN has launched EV Digital Services as a one stop service for electric vehicle users, promoting several features, such as access to spare parts to purchase from various manufacturers, information services for charging station location, total power consumption, test drive facilities and discussion forums to facilitate EV users.