Indonesia Aims for 100 GW Solar Power Capacity, Requires $100bn Investment
Jakarta, CNBC Indonesia - Indonesia’s Ministry of Energy and Mineral Resources (ESDM) projects that building 100 gigawatts (GW) of solar power plants will require 100billion, equivalenttoRp1.772trillion(atarateofRp17, 722perUS), with the target to complete within three years.
Director General of New and Renewable Energy and Energy Conservation (EBTKE) Eniya Listiani Dewi stated the government is aligning national electricity planning to achieve this target. She emphasised the need for cross-sector collaboration, particularly from international and private sector investors.
‘International collaboration and the private sector are essential; while private investment is projected to be substantial, we require over $100 billion in total investment,’ Dewi said at the 50th IPA Convention & Exhibition (Convex) in ICE BSD, Tangerang, on Monday, 25 May 2026.
The government aims for the majority of funding to come from Independent Power Producers (IPPs), with private sector participation expected to cover up to 70% of the required investment. ‘I estimate 70% will come from IPPs, so the private sector will join this major programme,’ she added.
The primary focus of the 100 GW solar project is to reduce diesel-powered electricity generation, which currently dominates eastern Indonesia. This move is economically critical as diesel-based electricity in remote areas is extremely costly.
‘A large part of the 100 GW solar programme is reducing diesel use in eastern Indonesia. Diesel-based electricity costs over $1 per kilowatt-hour in some areas,’ she explained.
Transitioning to solar power is expected to reduce fossil fuel imports and strengthen the national energy resilience index, currently at 6.7. The ESDM is committed to simplifying regulations to ease renewable energy investments.
‘We have strengthened regulations to make investments and business easier, with no more lengthy permits and licensing,’ she said.
President Prabowo Subianto is accelerating the green energy transition, targeting 100 GW solar capacity by 2029. He stated the government will maximise solar power usage within three years.
‘We want to move quickly to use solar electricity. We have plans and are determined to proceed as fast as possible, aiming to achieve 100 gigawatts of solar energy within three years,’ Prabowo said at the Indonesia-Japan Business Forum in Tokyo, Japan, on Monday, 30 March 2026.
The accelerated solar plant development is deemed urgent due to escalating geopolitical conflicts and uncertainties, particularly in the Middle East, threatening national energy supply stability.
‘For us, this is more urgent because Middle East geopolitical situations create strategic uncertainties for our energy security,’ Prabowo stressed.
As a precaution, the government is securing supplies through domestic resources. Besides solar, Indonesia has significant geothermal potential and is ramping up biofuel production, including B50 biodiesel and bioethanol.