Strategies to Optimise Project Management Implementation in the Delivery of Renewable Energy Projects in Indonesia

Abstract

One of Indonesia’s sustainability targets is achieving full energy transitions and net zero emissions by 2060 or sooner. Thus, significant strides and massive investments are being made to revolutionise the development and delivery of infrastructure projects, particularly in the energy sector. The State Electricity Company is driving these advances, targeting a surge in renewable energy usage to 23% by 2025 and 31% by 2050. Despite these efforts, progress remains critically low, highlighting the urgent need for more effective strategies and execution. A comprehensive understanding of the critical success factors (CSFs) and barriers—and how they influence these projects—is essential to ensuring their successful delivery. This study aims to identify and model the influences of various CSFs and barriers to renewable energy projects’ success in Indonesia. Using a questionnaire survey with 182 respondents, this study explored the critical success factors, key challenges, and applicable strategies. The data were analysed using exploratory factor analysis and structural equation modelling. The analysis revealed four critical success factors, including stakeholders’ collaboration and project supervision, and 10 key challenges, including insufficient planning, poor stakeholder communication, and unrealistic cost and time estimation. The strategies involved a cross-functional framework for effective collaboration, early consultation for integrating collaboration and supervision, and frequent reporting for enhanced supervision. These strategies are crucial to addressing emerging challenges in renewable energy projects and achieving sustainable development goals in Indonesia.