The transmission line will be built between the islands of Sumatra and Java.
The project involves construction of a 700km network to provide up to 3,000MW of electricity between Sumatra, Java and Bali.
Work on the project is scheduled to begin in 2013 and would be due for completion by 2017.
The company said the project is being funded by the Japanese International Cooperation Agency with matching funds from Persero.
