The Backbone of Energy Transition: Addressing the Financing Gap of Grid and Transmission System Supporting Energy Self-Sufficiency

January 2026

Larasati Wardhani, Advisor; Deni Gumilang, Project Lead, CASE Indonesia

Key stakeholders discussed current conditions and the future of transmission financing during the Transmission Finance Forum

Key stakeholders discussed current conditions and the future of transmission financing during the Transmission Finance Forum

© CASE Indonesia

On 11th December 2025, in Jakarta, the CASE Project organized the Forum Discussion on Addressing Grid and Transmission Financing Gaps to Support Energy Independence Through the Energy Transition in collaboration with the Directorate of Electricity Transmission, Aeronautics, and Space of the Ministry of National Development Planning/Bappenas.

Through a series of plenary and interactive sessions, the discussion sought to build a shared understanding of the technical and financial landscape of transmission financing, drawing on both national and international experience. Participants examined persistent challenges and emerging best practices, identified opportunities for innovative business models and financing schemes for transmission infrastructure, and explored avenues for collaboration to collectively address financing gaps in grid and transmission development. The exchange brought together speakers and active participants from government institutions, both energy and non-energy, alongside representatives of the private sector and international development partners, including KfW, ADB, OECD, and Agora Energiewende.

Technical challenges were also discussed, especially the need for grid flexibility, readiness to integrate variable renewables, and the adoption of smart grid and advanced control systems. Key recommendations led to the development of a transmission financing roadmap and guidelines, enhanced multi-sectoral coordination, and the establishment of applicable incentive and guarantee schemes.

Transmission infrastructure development is essential to the success of Indonesia’s energy transition and energy independence agenda under the 2025–2029 RPJMN. Transmission is therefore not just a delivery channel but a strategic pillar for system stability and renewable energy integration. The forum marks a quiet but consequential shift in how the energy transition is understood, recognizing that a green future depends not only on the power it generates, but on the transmission systems that carry it. By aligning policy, international investment, and technical innovation, transformation and the collaborations forged here will be the catalyst for a self-sufficient, stable, and renewable-ready national power system.

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