Initial Investment for 100 GWp Solar Power Programme Reaches Rp135 Trillion
The government requires investment of around Rp135 trillion (equivalent to US$7.7 billion) to build 14 solar power plant (PLTS) projects with a total capacity of 5.3 gigawatt-peak (GWp). These projects represent the initial phase of an ambitious programme to develop 100 GWp of solar power in Indonesia.
Director General of New Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, presented the plan while accompanying President Prabowo Subianto during a visit to the Gilimanuk solar power plant in Jembrana Regency, Bali, on Tuesday (25/8). The President was also accompanied by Minister of Energy and Mineral Resources Bahlil Lahadalia, PLN President Director Darmawan Prasodjo, and Bali Governor Wayan Koster.
The 100 GWp solar programme is designed to utilise land, reservoirs, and rooftops of homes and industrial buildings. The development scenario focuses on reducing and ultimately eliminating the use of diesel power plants across various regions to cut emissions and operational costs.
The construction of the 14 initial projects is projected to save up to Rp4.6 trillion per year from the state budget. Beyond budgetary efficiency, the programme aims to expand rural electricity access, support downstream processing, and bolster the electric vehicle and induction cooker ecosystem.
“Several projects have already shown tangible results, such as the inauguration of solar plants on Rengit Island and Sembur Island, which have fully replaced diesel,” said Eniya. On Sembur Island, solar energy has even been used to power cold storage facilities to support the economic activities of local fishermen.
Overall, the total investment required to reach the 100 GWp target is estimated at US$73 billion, or approximately Rp1,140 trillion. Despite the substantial funding requirement, the programme has the potential to generate electricity subsidy savings of Rp73.9 trillion per year.
President Prabowo Subianto has set a target for the 100 GWp solar development to be completed within three years. However, the President expressed hope that work on this national strategic project could be accelerated to two years to speed up the national energy transition.