Indonesia Secures $1.4 Billion Investment for Solar Power Expansion - Jakarta Globe
Indonesia Secures $1.4 Billion Investment for Solar Power Expansion
Jakarta. Indonesia has secured about $1.4 billion in foreign investment to support the development of solar power infrastructure, as the government accelerates efforts to expand renewable energy capacity, Investment Minister Rosan Roeslani said Thursday.
The investment will be used to build a manufacturing facility for solar power components with an annual production capacity of up to 50 gigawatts, aimed at supplying equipment for Indonesia’s planned solar power expansion.
The government is currently pushing forward a large-scale solar initiative targeting up to 100 gigawatts of installed capacity, part of broader efforts to increase the country’s clean energy supply.
“There is already an investment in Indonesia that will be completed this year for the construction of a factory — an investment worth $1.4 billion with a capacity of 50 gigawatts,” Rosan said at the Presidential Palace in Jakarta.
According to Rosan, the foreign direct investment began in mid-2025, and the factory is expected to be completed by the end of 2026.
President Prabowo Subianto has instructed the government to accelerate the solar power program through a range of financing mechanisms, Rosan added.
“We have been asked to review and study the financing structure, working with domestic partners as well as private companies that have the technology and capabilities in solar panels and battery systems,” Rosan said.
Initial 13 GW Phase
Rosan said the government plans to prioritize an initial development phase of around 13 gigawatts, focusing on regions that already have adequate electricity distribution networks.
While the long-term goal is to expand solar power access to villages across Indonesia, early projects will be concentrated in areas where grid infrastructure is already available.
“In principle, the plan is to expand to all villages, but the initial phase will prioritize areas that already have distribution networks,” Rosan said.
Rural Electrification and Energy Storage
The 100-gigawatt solar program is expected to focus heavily on rural areas and will be supported by energy storage systems with a total capacity of 320 gigawatt-hours (GWh) to ensure a stable electricity supply.
Project management is expected to involve around 80,000 rural cooperatives across the country, expanding community participation in renewable energy development.
Rosan also noted that Indonesia’s sovereign wealth fund Danantara has launched a pilot solar project with a capacity of 1 megawatt in Sumenep, East Java. If the pilot proves successful, similar projects could be replicated in other regions.
According to data from the Energy and Mineral Resources Ministry, about 5,758 villages — representing roughly 1.2 million households — still lack access to electricity, highlighting the potential role of renewable energy in improving electrification across the archipelago.
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