The government\u2019s target to develop solar power plants (PLTS) with a\ncapacity of 100 gigawatt peak (GWp) is believed to require regulatory\ncertainty to ensure projects are implemented consistently. The Foreign\nPolicy Community of Indonesia (FPCI) maintains that clarity in rules is\nessential, as the programme requires massive investment and involves\nnumerous government agencies.<\/p>\n
FPCI Founder and Chairman Dino Patti Djaluscstated that the\ngovernment\u2019s political commitment to the 100 GWp solar development must\nbe immediately followed by a clear regulatory foundation.<\/p>\n
\u201cThis is a step worthy of appreciation from President Prabowo, and we\nfully support it. The political commitment to 100 GWp is very\nencouraging and the target is certainly achievable. The next step is to\nstrengthen it with a clear and robust regulatory foundation,\u201d Dino said\nin a statement on Tuesday (1\/9\/2026).<\/p>\n
According to Dino, regulatory certainty is needed to bridge political\ncommitment with programme execution. He expressed hope that solar energy\ndevelopment could become a long-term policy of the President Prabowo\nadministration.<\/p>\n
\u201cWe want to see the 100 GWp solar ambition become President Prabowo\u2019s\nlegacy in the near future,\u201d he added.<\/p>\n
The government launched the 100 GWp solar programme and Battery\nEnergy Storage System (BESS) on 25 August 202<0xA0>6. On that\noccasion, President Prabowo also commenced the construction of a 305 MWp\nsolar plant and a 1 GWh BESS owned by PT PLN in Gilimanuk, Bali.<\/p>\n
Prabowo explained that the 100 GWp programme encompasses\ndiesel-to-solar conversion (de-dieselisation), rural and productive\nvillage electrification, power grid strengthening, and energy provision\nfor industrial zones. BESS will be integrated to support a cleaner, more\nreliable, and sustainable electricity system.<\/p>\n
The President also appointed several officials to oversee the\nprogramme\u2019s implementation, namely Coordinating Minister for Economic\nAffairs Airlangga Hartarto, Minister of Energy and Mineral Resources\nBahlil Lahadalia, Minister of Investment and CEO of Danantara Rosan\nRoeslani, President Director of PLN Darmawan Prasodjo, and President\nDirector of Pertamina Simon Aloysius Mantiri.<\/p>\n
FPCI believes that this cross-agency coordination must be accompanied\nby a clear division of authority. Clarity regarding institutional roles,\nprocurement, financing, and project stages is a crucial factor in the\nprogramme\u2019s execution.<\/p>\n
Minister of Energy and Mineral Resources Bahlil Lahadalia stated that\nthe 100 GWp solar development is a government move to utilise\nIndonesia\u2019s solar energy resources. The programme requires an investment\nof approximately US$73 billion and is estimated to create around 5.52\nmillion jobs.<\/p>\n
Bahlil also estimated that the programme could generate subsidy\nefficiencies of around Rp73.9 trillion annually. The scale of investment\nneeds and the potential economic benefits make the certainty of project\nschemes a vital factor in its implementation.<\/p>\n
Bahlil noted that the initial implementation phase includes 14\nprojects with a total capacity of 5.3 GWp across various regions in\nIndonesia. The government is also preparing an intervention mechanism\nfor projects undertaken by Independent Power Producers (IPP) should\ndevelopers be unable to offer competitive prices.<\/p>\n
In such circumstances, the government is considering the possibility\nof assigning tasks to Danantara, with financing adjusted according to\nPresidential directives.<\/p>\n
Bahlil emphasised that solar development must also provide added\nvalue to the national economy. According to him, solar panels and\nbatteries should be produced domestically, involving the Indonesian\nworkforce.<\/p>\n
Developing the domestic industry is seen as a way to expand the\neconomic benefits of solar investment, in addition to increasing\nrenewable energy capacity and strengthening energy security.<\/p>\n
FPCI believes the programme could also create opportunities for the\ndevelopment of the domestic solar industry, the expansion of energy\naccess, and the enhancement of power system resilience. Transparency in\nimplementation is necessary to maintain accountability and provide\ncertainty for both public and private stakeholders.<\/p>\n
The 100 GWp target has now entered the implementation phase following\nthe government\u2019s programme launch and the commencement of initial\nprojects. Its success will depend on policy consistency, regulatory\nclarity, and project execution in accordance with the set targets and\nfinancing schemes.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fpci-100-gw-solar-power-target-requires-regulatory-certainty-1788336097", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }