Jakarta, September 2, 2025 — The Indonesian government is beginning to position solar energy as a key strategy for reducing emissions and meeting energy needs at the national, regional, and industrial levels. According to the Electricity Supply Business Plan (RUPTL) of PT PLN (Persero) for the 2025-2034 period, the country is targeting a solar power plant (solar PV) capacity of approximately 17.1 GW. In addition, President Prabowo Subianto also launched a program for 100 GW of solar power to be developed across villages.

The Institute for Essential Services Reform (IESR) believes these solar energy plans and initiatives need to be supported and implemented fairly by addressing various regulatory, financial, and governance challenges, along with sustainable supply chain development. To strengthen commitment, cross-sector collaboration, and strategic learning to accelerate the integration of solar energy as a primary pillar of a sustainable and competitive energy transition, IESR is partnering with the Coordinating Ministry for Economic Affairs of the Republic of Indonesia and the Ministry of Energy and Mineral Resources of the Republic of Indonesia to organize the Indonesia Solar Summit (ISS) 2025. This forum reflects the spirit of gotong royong (mutual cooperation) in ensuring the massive and inclusive use of green energy.

Marlistya Citraningrum, IESR’s Sustainable Energy Access Program Manager, stated that the use of solar power plants in Indonesia is developing with different patterns at each scale, from village electrification to industrial needs and utility-scale generation. However, the challenges faced are relatively similar: frequently changing regulations, limited financing schemes, and a still-weak domestic supply chain.

Over the past five years, Indonesia has actually started to show momentum in solar power development. Indonesia only had specific regulations for rooftop solar in 2018, which led to a relatively rapid adoption, especially in the industrial sector, with capacities reaching tens of megawatts per location. As of May 2025, the national installed solar power capacity has finally surpassed 1,000 MW (1 GW). Rooftop solar programs at the provincial level, such as in Central Java and DKI Jakarta, also show a positive trend, with hundreds of households, MSMEs, schools, and Islamic boarding schools beginning to adopt it. In the industrial sector, large companies are installing rooftop solar to reduce electricity costs and meet the increasingly strict demands of export markets for the use of clean energy. This momentum needs to be strengthened so that solar power does not stop at pilot projects but develops into a mainstream part of the national energy system.

According to IESR, the acceleration of solar power utilization can only be realized if it is supported by consistent policies, fair and inclusive access to financing, and active public participation.

“Solar energy is key to the clean energy transition. With a potential of more than 7 TW, Indonesia has a great opportunity to leap into a greener future. This momentum shouldn’t just be utilized by large industries; solar power must also be present in schools, Islamic boarding schools, MSMEs, and households,” Marlistya emphasized during the Indonesia Solar Summit 2025 Media Briefing on Tuesday (2/9).

She added that ISS 2025 will highlight the role of community participation through concrete actions by communities, local governments, and market players. In addition, the forum will also discuss the development of solar energy while encouraging investment and innovation by bringing together business actors, technology providers, and policymakers.

Andriah Feby Misna, Director of Various New and Renewable Energy at the Ministry of Energy and Mineral Resources (ESDM), explained that the government is drafting regulations for the development of renewable energy, including a revision of Presidential Regulation No. 112/2022 and the ESDM Minister’s Regulation on Parallel Operation Solar Power Plants.

Andriah encouraged the participation of local governments in the development of renewable energy, for example, by aligning regional spatial planning to support solar power investment, acting as a mediator in land acquisition issues, allocating regional budgets for solar power projects in government and public buildings, and providing incentives for the development and use of renewable energy.

Alvin Putra Sisdwinugraha, Electricity and Renewable Energy Analyst at IESR, said that based on a mapping of solar power growth in Indonesia, of the total 916 MW of installed solar capacity in Indonesia as of the end of 2024, the majority was contributed by large-scale solar power plants. However, he noted a new trend where distributed solar, such as rooftop solar, especially from the industrial sector, made a significant contribution in 2024, with an additional capacity of more than 100 MW.

“Captive solar power, or solar power used for the industrial sector, has become a factor in increasing the competitiveness of Indonesian industry in the global market. Based on its development, the business area (wilayah usaha, red) has tripled since 2017, which is a great opportunity for the installation of captive solar power. The government needs to increase transparency in system planning, data, and licensing, for example through an application,” Alvin explained.

Furthermore, Alvin revealed that the 3.4 GW renewable energy electricity export project to Singapore can be an opportunity to strengthen the domestic supply chain with 60 percent local content (TKDN). For this reason, the government needs to establish a legal basis to affirm PLN’s role in the project.

From the perspective of the solar power supply chain, Indonesia’s estimated solar module production capacity reaches 11.7 GWp per year, with several Tier-1 producers also having invested in Indonesia. The absorption of this production capacity needs to be increased, one way being consistent domestic demand through utility-scale projects. In addition, the price of local modules is currently relatively 30-40 percent more expensive than imports, so it needs to be helped with incentives such as exemption from import duties on raw materials.

“To encourage investment in the supply chain, it is important to ensure consistent domestic demand. In addition, the government needs to prepare a strategy so that the local content rules can still attract investment while protecting local industry,” Alvin emphasized.

To ensure the success of solar power projects, IESR stresses the importance of having a strong and efficient supply chain. Support from the domestic manufacturing sector, which is capable of producing top-quality solar panels, will be very influential in the smooth running of these renewable energy projects, both in the domestic and international markets.

IESR has been holding the Indonesia Solar Summit (ISS) since 2022 in collaboration with the Ministry of Energy and Mineral Resources. The fourth edition of the Indonesia Solar Summit (ISS) 2025 is themed “Solarizing Indonesia: Powering Equity, Economy, and Climate Action.” The event, which will take place on Thursday, September 11, 2025, will focus on strengthening commitment, cross-sector collaboration, and strategic learning to accelerate the integration of solar energy as a main pillar of a competitive sustainable energy transition and to encourage economic growth. Registration is free at idsolarsummit.info.