Airlangga Invites China to Invest in 100 GW Solar Power Project in Indonesia

Coordinating Minister for Economic Affairs Airlangga Hartarto has invited Chinese companies to invest in the development of a 100 gigawatt (GW) solar power plant (PLTS) project in Indonesia as part of efforts to accelerate the national energy transition. The target for solar power plant construction is in line with President Prabowo Subianto’s directive to support the energy transition and industrial downstreaming. The Ministry of Energy and Mineral Resources (ESDM) is targeting the 100 GW solar capacity to be realised by 2029. “Indonesia appreciates China’s investment involvement in the construction of the Cirata Floating Solar Power Plant. The project demonstrates the significant potential for Indonesia-China cooperation in supporting the energy transition, clean energy development, and achieving emission reduction targets,” Airlangga Hartarto said in a statement received in Jakarta, quoted from Antara, Saturday, 18 July 2026. According to Airlangga, the solar panel industry already operating in Indonesia still has room to be strengthened through the development of a more complete and integrated solar industry supply chain domestically. The investment invitation was conveyed by Airlangga during a bilateral meeting with Chinese Minister of Commerce Wang Wentao in Shanghai. The meeting discussed strengthening cooperation in the fields of economy, trade, investment, energy transition, and regional cooperation between Indonesia and China. Airlangga noted that China remains Indonesia’s largest trading partner. In 2025, the trade value between the two countries reached USD154.6 billion, with an average growth of 7.24 percent during the 2021-2025 period. In the investment sector, China is also one of the top three foreign investors in Indonesia. Realised Chinese investment in 2025 reached nearly USD8.1 billion, or about 13 percent of total foreign investment entering Indonesia. The investment primarily flowed into the processing industry, trade, energy, property, and transportation and warehousing sectors. During the meeting, Airlangga also discussed strengthening cooperation through the Two Countries Twin Parks (TCTP) scheme. To date, 30 memoranda of understanding have been signed with an estimated investment value of around IDR37.1 trillion. Airlangga stressed the importance of following up on these various agreements into concrete investment projects. He also encouraged the formation of joint ventures between Indonesian and Chinese business actors to accelerate the implementation of cooperation within the TCTP framework. “The various Memoranda of Understanding that have been signed need to be followed up immediately into real investment. We also encourage the formation of joint ventures so that TCTP cooperation can produce more concrete economic benefits,” Airlangga said on Friday, 17 July 2026. In addition, the government hopes that the Chinese Ministry of Commerce can encourage more Chinese companies to invest in the development of industrial estates and commercial areas in Indonesia. In the trade sector, Indonesia is pushing for a more balanced trade relationship through increased market access for national products, strengthening industrial downstreaming, increasing exports of value-added products, and export-oriented investment. Airlangga assessed that Danantara Indonesia can play a role as a strategic partner in attracting quality investment, strengthening national production capacity, developing priority projects, strengthening supply chains, increasing technology transfer, creating jobs, and supporting more balanced bilateral trade. On regional economic cooperation, Indonesia also requested China’s support for the establishment and placement of the Regional Comprehensive Economic Partnership (RCEP) Secretariat in Indonesia. The government is also encouraging the strengthening of the RCEP 3.0 agenda to respond to changes in global trade, digital transformation, and supply chain dynamics. Ahead of the APEC 2026 summit in China, Airlangga expressed Indonesia’s support for China’s chairmanship and hoped both countries could begin identifying priority projects to be announced at the leaders’ meeting. “The Indonesian government is committed to maintaining policy certainty and creating a conducive investment climate. We hope this meeting can be followed up through concrete cooperation and projects that provide balanced and mutually beneficial benefits for both countries,” he said.