Govt reviews solar power deregulation to boost clean energy push

The government is reviewing plans to deregulate solar power development in a bid to accelerate its transition to renewable energy and strengthen energy security, a senior energy ministry official said.

The Energy and Mineral Resources Ministry is considering removing distinctions between different types of solar installations, such as rooftop, floating and ground-mounted systems, to streamline development, said Eniya Listiani Dewi, Director General of New and Renewable Energy.

“We are reviewing solar power deregulation so that in the future all solar installations can be treated the same and utilized as independent energy sources,” she said on Tuesday, as quoted by Antara.

Simplifying regulations is expected to help expand solar deployment while supporting the growth of a domestic solar industry, which could generate jobs, attract investment and improve Indonesia’s global competitiveness, she added.

Solar development has been incorporated into state utility PT PLN’s long-term electricity supply plan (RUPTL) through 2034, targeting 17.1 gigawatts (GW) of capacity. The government is also pursuing a much larger goal of up to 100 GW of solar capacity, in line with President Prabowo Subianto’s directive.

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Indonesia currently has around 1.5 GW of installed solar capacity, including about 895 megawatts (MW) from rooftop systems, Eniya said. The expansion of solar energy could create up to 760,000 jobs, she added.

The government plans to expand solar use beyond rooftops to include ground-mounted systems, particularly in villages, healthcare facilities and to support electric vehicle adoption.

As part of the push, Indonesia aims to replace 13 diesel-fired power plants within the next two years, a move that could reduce national oil consumption by around 200,000 barrels.

The broader solar programme includes plans to install about 1 megawatt (MW) of solar capacity in each village. With roughly 80,000 villages nationwide, the initiative could contribute up to 80 GW toward the overall target, supplying electricity to hundreds of households per installation.

Prabowo has said Indonesia must rely more on domestic energy resources and cut fuel imports, which currently stand at around 1 million barrels. Diesel-fired plants account for about 20% of those imports, he said earlier this month, adding that they would be phased out.

“In the future, there should no longer be power plants using diesel fuel,” he said.

Surya Darma, chairman of the Indonesia Center for Renewable Energy Studies, said replacing diesel plants with solar power was a logical step given the high costs and emissions associated with diesel, particularly in remote areas.

He added the shift could reduce fuel subsidies and improve energy security by lowering reliance on volatile global energy markets.

Editing by Reiner Simanjuntak