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Indonesia’s New Capital Leads The Way In Energy Transition

During Indonesia’s 79th Independence Day celebrations in August, few knew that the festivities in the new capital, Ibu Kota Nusantara (IKN), was partly fuelled by green energy and Hitachi’s social innovation, supporting the nation’s utility provider, PT PLN (Persero).

 

 

 

IKN which aims to be Indonesia’s first smart and eco-friendly city is currently powered by 10 Megawatts of sustainable energy distributed through substation installed with Hitachi Energy Gas Insulated Switchgears (GIS) and state-of-the-art digitalization.

“On March 2024, the Phase 1 synchronisation (between a solar power plant and the electricity transmission network for IKN) was carried out on schedule and successfully implemented,”

said Andy Kostiono, Business Unit Manager, Grid Integration, Hitachi Energy, Indonesia. “There are a total of 12 feeders distributing energy to the new capital and other areas around it” he added.

“With its presence in Indonesia for close to 50 years, Hitachi Energy has implemented many important projects in Indonesia’s energy system,”

said Predrag Grupkovic, Country Managing Director, Hitachi Energy, Indonesia. “This allows us to accumulate vast experience and insights into the country’s energy system and its needs.”

“Our cutting-edge technology, strong regional presence in Indonesia and ASEAN, as well as synergies across the Hitachi group of businesses, places us in a unique position to support Indonesia’s energy transition,” he further explained.

 

 

Indonesia’s Green Challenge

Among the driving factors, to move the capital city from Jakarta, are the fact that the city is overpopulated and struggling with air pollution. Furthermore, a research study revealed during the 2018 World Economic Forum that the capital city is sinking. In 2019, the government under President Joko Widodo announced that the nation’s capital city will be moved to East Kalimantan, situated in the eastern part of Indonesia. This area is strategically located at the centre of the Indonesian archipelago.

In parallel, the government decided that this new capital would lead the way in the country’s ambitions of being carbon neutral by 2060.

When construction for the new capital city began in 2022, one of the first projects undertaken was to develop a grid to power IKN with green energy. State-owned energy company, PLN (Perusahaan Listrik Negara) built an 86-hectare solar farm and began collaborating with Hitachi Energy to integrate solar power output with Kalimantan’s conventional grid system, thereby enabling integrated green energy supply to IKN.

To do this, a substation was built to house a system of automated Gas Insulated Switchgears that can transfer 120 MVA, which is enough energy for IKN’s administrative area and beyond.

The hybrid solar system is similar to earlier projects undertaken by Hitachi Energy in Semau, on the Sunda Islands, Selayar off Sulawesi, and Nusa Penida near Bali, which was showcased at the G20 Summit in 2022.

PLN, in voicing its commitment to help develop IKN into a smart and green city, has already stated that aside from solar power, it plans to draw on the potential of hydro power from the rivers and lakes in East Kalimantan.

As a partner, Hitachi Energy has experience in integrating, transmitting and balancing the various forms of sustainable energy in Indonesia, including solar,wind hydro and geo-thermal energy.

 

 

Committed To The Future

Looking ahead, Mr Grupkovic reveals that IKN aims to be a zero-emission city by 2040 with green mobility. “Hitachi Energy has technology to support EV fleet bus charging, and we are in discussions with a public transport provider to pilot one project in Jakarta.”

Hitachi Energy in Indonesia is continuously growing with approximately 300 employees spread across Indonesia. Furthermore, the company has a High-Voltage manufacturing facility in Tangerang and a Global Software Development Center in Bali, focusing on R&D and software development not only for Indonesia, but also world-wide.

Hitachi Energy has come an integral part of Indonesia’s electricity environment, supporting innovation and technology development by collaborating with major local universities.

 

 

 

In addition, Mr Grupkovic reveals that in 2023, Indonesia’s Ministry Energy and Mineral signed a Letter of Intent with Hitachi Energy which was the basis of PLN’s partnership with the company on knowledge sharing and feasibility studies on grid interconnection (High Voltage Direct Current: HVDC) between major islands.

“Hitachi Energy remains in a unique position to support Indonesia’s energy transition. We will continue do so in many years to come and in collaboration with all stakeholders.”

 

Date of Release: February 2025

 

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