Government Wants to Boost Solar Power Plant Development, Indef Proposes This Approach
The Institute for Development of Economics and Finance Green Transition Initiative (Indef GTI) has proposed developing solar power plants (PLTS) with a capacity of 30 gigawatt peak (GWp) in industrial estates using a renewable energy zones approach. “The renewable energy zones concept has the potential to be integrated into industrial estates by bringing together renewable energy potential and industrial energy demand in a single area,” said Indef GTI Director Imaduddin Abdullah in an official statement received in Jakarta on Friday (28/8/2026).
According to him, industrial estates have several advantages. Industrial estates can lend their networks and power evacuation points to renewable energy projects on surrounding land, then absorb the electricity generated at a discounted price. “This reduces project electricity costs. Another advantage is that the needs of manufacturing industries, smelters, and data centres also make them natural buyers,” said Imaduddin.
For tenants bound by the carbon border adjustment mechanism (CBAM) and global climate commitments, a supply of clean energy is also a compliance requirement. Industrial estates also have the potential to become nodes for Indonesia’s reindustrialisation.
Imaduddin said the economic potential is beginning to emerge from Indef GTI’s initial analysis of eight special economic zones (KEK). Integrating these zones with renewable energy has the potential to increase aggregate gross regional domestic product (PDRB) growth from 5.95 percent to 6.30 percent. “The impact could potentially be greater if a similar approach is applied more broadly in other KEKs and industrial estates in Indonesia,” he said.
Room to expand the economic impact is evident from the large potential for solar power development in industrial estates. Based on a 2026 study by Indef GTI together with Systemiq Indonesia, with estimates carried out by Systemiq, industrial estates have solar potential of up to 21 GW. This total comes from around 6-13 GW from within the estates, through factory rooftops as well as idle non-commercial land and water surfaces. The remainder, 7-8 GW, comes from nearby land for utility-scale solar power combined with batteries.
“The 6-13 GW portion is classified as low-hanging fruit because it can be worked on first. Initiating 100 GWp through clear phasing makes the development target clearer, but its realisation still requires extraordinary efforts from various policymakers,” said Imaduddin.