Indonesia eyes faster solar rollout as potential reaches 7.7 TW, think tank says
Thursday, March 26 2026 - 08:57 AM WIB
Indonesia is seeking to accelerate the development of solar power as the country holds technical potential of up to 7.7 terawatts, offering a pathway to reduce reliance on fossil fuels and support green economic growth, the Institute for Essential Services Reform (IESR) said.
IESR said the vast solar potential could underpin Indonesia’s ambition to become a regional renewable energy leader, aligning with President Prabowo Subianto’s plan to develop 100 gigawatts (GW) of solar capacity.
“With the right implementation strategy, the 100 GW solar programme could provide reliable and affordable electricity to tens of millions of people, save up to Rp 21 trillion in fuel subsidies, attract $50 billion to $70 billion in investment, and create more than 100,000 green jobs,” IESR Chief Executive Fabby Tumiwa said in a statement.
Read also : Govt prioritizes 13 GW solar rollout in initial phase of 100 GW target
The think tank added that the programme could also cut greenhouse gas emissions by around 24 million tonnes of CO2 equivalent. However, it warned that achieving these targets would require transparent governance, clear roadmaps, competitive procurement and stronger institutional capacity, alongside financing estimated at up to $70 billion over the next five years.
IESR also highlighted the need for coordination across government agencies, support from the banking sector and greater private sector participation, as well as workforce development for installation, operations and maintenance.
In an initial phase, about 26 GW of decentralised solar capacity combined with battery energy storage systems (BESS) has been identified from existing government and utility programmes, including replacing diesel power plants in remote areas and expanding rural electrification, said Alvin Putra Sisdwinugraha, an analyst at IESR.
He added that further expansion toward the 100 GW target would need to be incorporated into state utility planning, requiring policy trade-offs such as accelerating the retirement of ageing coal-fired power plants and limiting new coal capacity. Without such measures, solar development could be constrained and risk creating excess fossil-based capacity.
The renewed focus on solar comes amid heightened geopolitical tensions affecting global energy markets, underscoring Indonesia’s push to strengthen energy security while advancing its transition to cleaner power sources.
Editing by Reiner Simanjuntak