Tycoon Jusuf Kalla Pledges $4.4 Billion Investment Into Indonesia’s Green Energy Surge

JAKARTA, Investortrust.id — Former Indonesian Vice President Jusuf Kalla has pledged a massive private investment of Rp 60 trillion to Rp 70 trillion ($3.77 billion to $4.4 billion) to construct 2,000 megawatts (MW) of new power generation capacity across the archipelago.

The announcement followed a high-profile, closed-door meeting with President Prabowo Subianto at the Merdeka Palace on Thursday, June 11, 2026. The high-stakes discussion centered on securing national energy self-sufficiency as the country grapples with a fragile power grid and rising industrial demand.

This multi-billion-dollar play by the Kalla Group, a prominent domestic conglomerate, signals a critical shift toward private sector-led green energy infrastructure in Southeast Asia’s largest economy. By targeting a mix of clean hydropower (PLTA) and transitional gas-fired (PLTG) plants, the project directly aligns with global investor demands for sustainable supply chains. Furthermore, it provides a crucial capacity injection to an electricity grid currently pushed to its absolute limits.

Powering the 8% Growth Ambition

The political heavyweight, widely known as JK, emphasized that transforming Indonesia's current 5% to 6% GDP growth into President Prabowo’s targeted 8% expansion is mathematically impossible without a drastic increase in power generation. The President reportedly gave an immediate green light to accelerate the development.

"To boost energy capability in Indonesia, what we know as energy self-sufficiency, we are ready," Kalla stated on Thursday, June 11, 2026, after the palace meeting. "We have already built 1,500 megawatts of hydropower, and now we are ready to build another 2,000 megawatts, including gas-fired power plants."

Accompanied by his son and Kalla Group Chief Executive Officer Solihin Kalla, as well as State Secretary Minister Prasetyo Hadi, Kalla revealed that the company is not starting from scratch.

"There must be a business aspect to this development because it involves a very large investment, around Rp 60 trillion to Rp 70 trillion, and we are capable of executing it," Kalla explained. "The designs are ready, the locations are secured, and we just need to finalize the technical discussions. The President agreed that we must realize this immediately."

A Shift Toward Green Energy Sovereignty

The proposed expansion will significantly build upon Kalla Group's existing renewable portfolio. The corporate push into green energy comes at a turning point for Indonesia, which has faced severe criticism from environmental groups and international partners for its slow retirement of coal-fired generation.

By securing executive backing for a rapid green energy rollout, the initiative could bypass traditional bureaucratic bottlenecks that have historically stalled independent power producer (IPP) projects in the country. The focus now shifts to state electricity utility PLN to finalize the technical purchase agreements and integrate this massive upcoming capacity into the national grid.