Indonesia is rich in clean energy sources such as solar, wind, hydro, bioenergy, and geothermal energy. Currently, clean energy accounts for 13.09% of its energy mix, and the government plans to increase this proportion to 31% by 2050. In recent years, Chinese enterprises have actively participated in the development of clean energy in Indonesia and undertaken several major projects. The green energy transition has become a new highlight in China-Indonesia cooperation, not only injecting new impetus into Indonesia's sustainable economic development but also bringing new opportunities for bilateral cooperation.
The Largest Geothermal Power Station——
"Showcasing the advanced technology of Chinese enterprises in the green energy sector"
At Mount Lumut Balai in southeastern South Sumatra Province, Indonesia, the unit of the 55MW Lumut Balai Phase II geothermal project successfully connected to the grid for the first time recently. At the "hot" construction site, worker Rico Rahmadani, wearing a safety helmet, bent over at the intersection of pipelines, repeatedly comparing the drawings with the on-site structure. He shook the steel bars to check if the binding was firm, then leaned down to align the level with the edge of the formwork, calibrating the elevation bit by bit. "It needs to be lowered by another two millimeters here," he said to his coworker in the Chinese he had just learned. The Chinese master in the distance smiled and nodded: "That's the spirit!"
Geothermal energy is a renewable energy source with the advantages of continuity, stability, safety, reliability, cleanliness, and carbon neutrality. According to official data, Indonesia is the world's second-largest geothermal power generator, with geothermal resources accounting for over 40% of the global total. Indonesia has approximately 24 GW of geothermal power generation potential, but only 2.6 GW has been developed so far. The Indonesian government plans to increase the total installed capacity of geothermal power stations to 7.9 GW by 2035.
The 55MW Lumut Balai Phase II geothermal project is located in a region with frequent volcanic activities on Sumatra Island and is a national strategic project in Indonesia. Once completed, it will add 55MW of power generation capacity to the existing geothermal power station. The project is jointly promoted by PowerChina's Shandong Electric Power Construction No.3 Engineering Co., Ltd. and Indonesia's state-owned oil company. It is currently the largest geothermal power station undertaken by a Chinese enterprise in Indonesia and the first demonstration project led and completed on a large scale by a Chinese enterprise, achieving breakthroughs in Chinese management and technology.
The project team has implemented a "master-apprentice" system, where Chinese technical backbone staff provide one-on-one guidance to Indonesian employees, offering comprehensive training in drawing interpretation, process standards, safety, and quality control. Rico Lahmardhani has grown rapidly through practical training. He has progressed from merely executing drawings to understanding them. His Chinese mentor described him as "the fastest improver and the most diligent." "I've learned a lot of new skills and made great progress by following my Chinese mentor," said Rico.
Project Manager Zhu Lintao stated that in addition to the "mentor-apprentice" system, the project team also launched the "Local Youth Skills Enhancement Program," organizing multiple special training courses on electrical installation, equipment hoisting, safety production, etc. "Many employees who had never been exposed to related industries have gained valuable professional skills in the project." Currently, the project has provided over a thousand direct and indirect jobs for the local community and trained nearly a hundred young backbones mastering geothermal power station construction technology.
Before working on the project, Armusa only did some simple manual labor, and his family's income was unstable. After joining the project, he participated in several skill training courses, gradually mastered electrical operation skills, grew from an ordinary worker to a skilled electrician, and his income doubled. "Now life at home is much better, and my children can go to school with peace of mind," Armusa said. "This job has shown me a better future."
According to local media reports, once completed, the 55MW Lumut Balai Phase II geothermal project can reduce carbon dioxide emissions by up to 580,000 tons annually. Zhu Lintao said: "This project showcases the advanced technology of Chinese enterprises in the green energy field and is another landmark achievement in China-Indonesia green cooperation."
The Largest Hydropower Station Dam——
"Will help millions of local residents access more stable clean electricity"
At the end of March this year, deep in the mountains in southern North Sumatra Province, the dam of the Batang Toru Hydropower Station in Indonesia was fully capped, marking that this high-quality flagship project under the Belt and Road Initiative has entered a critical stage of preparation for power generation.
The Batang Toru Hydropower Station is undertaken by a consortium consisting of Sinohydro Bureau 10 Co., Ltd. and PowerChina Beijing Engineering Corporation Limited, both subsidiaries of PowerChina. It is located in the middle and lower reaches of the Batang Toru River on Sumatra Island, approximately 400 kilometers from Medan, the capital of North Sumatra Province. It is the largest hydropower station under construction in Indonesia. The main dam project started in January 2022 and is scheduled to start impoundment in July this year.
Guo Tao, Safety Director of the Batang Toru Hydropower Station, introduced to reporters that the total installed capacity of the Batang Toru Hydropower Station is 510MW, and it is planned to be completed and put into operation by the end of this year. Once operational, the annual power generation is expected to reach 2.228 billion kWh. "At that time, the power supply pressure on Sumatra Island will be greatly relieved, and it will help millions of local residents access more stable clean electricity." After the Batang Toru Hydropower Station is put into operation, it will effectively improve the energy structure of Sumatra Island, which is dominated by coal-fired power, and is expected to reduce carbon dioxide emissions by over one million tons annually. Hadi Susilo, a water conservancy and civil engineering expert from the project management company, PT North Sumatra Hydro Energy, said: "The Batang Toru Hydropower Station covers an area of only 101 hectares, making it one of the hydropower stations with the highest space utilization efficiency in Indonesia. It will also replace some local diesel and coal-fired power plants with high pollution, and is expected to become an important milestone in Indonesia's green energy transition."
It is estimated that during the construction and operation periods, the Batang Toru Hydropower Station will create over 4,000 jobs and drive the development of related industries such as surrounding construction, equipment, logistics, and supporting services. The project party has also actively promoted localized construction. The project team, in collaboration with the Indonesian Ministry of Manpower, has carried out professional training on high-altitude operations, cultivating a group of local technical talents.
Aip is a contract engineer at the Batang Toru Hydropower Station and is affectionately called "an expert on Indonesia" by the project team. He often conducts in-depth market research in the local area, coordinates and communicates with the government and communities, and solves many practical problems. "I was originally a civil servant. Seeing that Chinese enterprises brought funds, technology, and professional teams, I was full of confidence in the project and decided to join the construction team of the Batang Toru Hydropower Station," Aip said. Chinese enterprises have brought advanced technology and management experience to Indonesia. "The construction of the hydropower station is of great significance and will greatly promote employment growth, improve people's livelihood, and boost economic development."
Guo Tao said that with more stable power supply, residents' electricity usage will be more reliable, enterprises' production costs will decrease accordingly, industries such as transportation, logistics, and infrastructure will benefit, and more enterprises will be attracted to settle in Sumatra, driving regional economic development.
The Largest Onshore Photovoltaic Project by Installed Capacity——
"Will provide important support for enhancing Indonesia's industrial competitiveness"
Setting off from Jakarta and driving about an hour southeast, one arrives at the Karawang Industrial Park in West Java Province. The sun shines through the dense forests, and beyond the layers of greenery, a large neat array of gray panels comes into view——this is the 100MW Karawang Photovoltaic Project. Rows of solar panels glisten in the sun, absorbing the intense sunlight and continuously converting it into clean energy to provide green electricity for the industrial park and surrounding residents.
The 100MW Karawang Photovoltaic Project covers an area of approximately 80 hectares, with a planned DC installed capacity of 100.78MW. It consists of 5 plots and 24 power generation units, making it the largest onshore photovoltaic project by installed capacity in Indonesia. The project is undertaken by PowerChina Hubei Engineering Corporation Limited and was connected to the grid for power generation in July 2024 and officially put into use in August. As the general contractor, PowerChina Hubei Engineering Corporation Limited is fully responsible for the design, procurement, construction, and commissioning of the photovoltaic area, successfully integrating international standards with Chinese technical standards.
It is reported that the project can provide over 150 million kWh of clean electricity annually, which is sufficient to meet the annual electricity demand of approximately 112,000 households. It can reduce carbon dioxide emissions by about 114,700 tons and save 58,400 tons of standard coal annually. During the construction period, the project provided over a thousand jobs for the local area and trained a group of local workers with professional skills.
The 100MW Karawang Photovoltaic Project features significant intelligent characteristics. Huawei Digital Energy provided the project with an advanced intelligent string inverter solution, whose high-level protection rating can adapt to Indonesia's complex environmental conditions such as tropical high temperatures and rainforests. In addition, the patented technology of intelligent string breaking also provides guarantee for the safe and stable operation of the power station. By integrating digital technology with an intelligent management system, the project has improved power generation efficiency while effectively reducing operation and maintenance costs. It can realize remote monitoring to further optimize the operation status of the power station.
Darmawan Prasodjo, President of PLN, the project investor and Indonesia's state-owned electricity company, said: "Against the backdrop of the global clean energy transition, the demand for green electricity in Indonesia's domestic industry is increasing. The 100MW Karawang Photovoltaic Project will provide important support for enhancing Indonesia's industrial competitiveness and is conducive to increasing product added value." Darmawan stated that electricity is an important foundation for economic development, and the stable supply of environmentally friendly electricity will fully promote the sustainable development of Indonesia's industry.