AESI urges regulatory certainty to support 100 GW village solar program

By Pandu Setiabudi

The Indonesian Solar Energy Association (AESI) has urged the government to establish a clear legal framework for the planned 100 gigawatt (GW) solar power program, warning that regulatory certainty will be crucial to ensure consistent implementation and attract long-term financing.

The call follows the government’s plan to roll out a massive village-based solar initiative targeting up to 100 GW of capacity nationwide, as part of its energy transition strategy.

Head of AESI’s 100 GW Task Force, Rama Dinara, said a dedicated regulation is needed to accelerate the program beyond existing business-as-usual schemes.

 “We agree that a legal umbrella is needed for this program. There must be a regulation that is not business as usual, but one that accelerates all existing initiatives,” Rama said during a stakeholder discussion on Monday (February 23).

According to AESI, the regulatory framework should address tariff certainty and clear electricity offtake arrangements to strengthen investor confidence, particularly among financial institutions. Without predictable revenue streams and standardized contract structures, large-scale solar projects risk facing bankability challenges.

This view is shared by state-owned infrastructure financier PT Sarana Multi Infrastruktur (SMI). Nadia Sancayawati, Team Leader at SMI’s Financing Division, said the primary hurdle in renewable energy financing remains bankability, which depends heavily on revenue certainty.

 “The main issue in financing is bankability, and bankability rests on revenue certainty,” she said.

Read also : Govt to adjust regulatory framework to accommodate 100 GW solar target

SMI stressed that lenders require clarity on tariff structures, the volume of electricity to be absorbed, and long-term contract certainty. Nadia added that standardized power purchase agreements would help reduce risks, provided demand projections are realistic.

 “Contract certainty would be better if there were standardized contracts covering tariffs and absorbable volumes, but appropriate projections must be provided. We must avoid situations where the local economy cannot absorb the targeted volume or where costs cannot be covered by the tariff,” she said.

Beyond financial structures, SMI also highlighted the importance of clear operation and maintenance (O&M) schemes, including the appointment of reliable operators to safeguard asset performance and minimize operational risks.

From the government side, Nono Suprayetno, Coordinator for Renewable Energy Program Preparation at the Ministry of Energy and Mineral Resources (MEMR), said policy discussions on the 100 GW solar program have so far been conducted internally but will soon expand through broader inter-ministerial coordination. Initial discussions have already taken place with the Ministry of Cooperatives, particularly regarding the role of cooperatives in implementation.

Under the government’s plan, the Merah Putih Village Cooperatives (Koperasi Desa Merah Putih/KDMP) will serve as key actors in developing distributed solar power plants at the village level. The program envisions around 80,000 cooperatives managing projects of roughly 1 megawatt (MW) each, aimed at expanding electricity access, supporting local economic activity, and promoting village-level energy self-sufficiency.

Previously, Energy and Mineral Resources Minister Bahlil Lahadalia said the nationwide target of 80–100 GW would require significant foreign investment, given Indonesia’s current solar panel manufacturing capacity of around 5 GW per year. The government plans to invite international investors to collaborate with local companies and state-owned enterprises, including PLN, to realize the ambitious program.

Editing by Reiner Simanjuntak