Driving Solar Energy Towards Achieving an Energy Mix of 23% in 2025

Jakarta, July 26, 2023 – Solar energy must be accelerated to achieve a renewable energy mix of 23% by 2025 and reach net zero emissions by 2060 or earlier. Unfortunately, renewable energy had only made up approximately 12.3% of the national energy mix by 2022.

Director of Various New Energy and Renewable Energy, Directorate General of EBTKE, Ministry of Energy and Mineral Resources (ESDM) Andriah Feby Misna explained various programs are continuously being encouraged to utilize solar energy. Whether through a large-scale solar power plant (solar PV) program, floating solar PV, or rooftop solar PV. From a regulatory standpoint, said Feby, the revision to Minister of Energy and Mineral Resources Regulation No. 26 of 2021 concerning Rooftop Solar PV Connected to the Electric Power Network Holders of Business Licenses to Provide Electricity for Public Interest (IUPTLU) has been harmonized by the Ministry of Law and Human Rights.

“We have harmonized the revised ESDM Regulation 26/2021 with the Ministry of Law and Human Rights. Hopefully, it can be enacted shortly. Some of the content that has been changed in the revision of the Minister of Energy and Mineral Resources 26/2021 includes the provisions on the capacity that may be installed; in this revision, we do not limit the capacity they can install but must follow the existing quota. So as long as the quota exists, regardless of capacity demand, it must be met according to the existing quota,” said Feby in a panel discussion entitled “Solar regulations, implementation, plans” at the Indonesia Solar Summit event organized by the Ministry of Energy and Mineral Resources together with IESR.

In addition, Feby mentioned, the revision of the ESDM Permen also regulates changes related to exports and imports. Considering that currently, PLN is experiencing a surplus and PLN’s limitations in being able to accept intermittent generators, for this reason, there is no change to this Ministerial Regulation for exports. It remains connected to PLN, but when there are exports, this does not count as a reduction in consumer bills.

“With no export-import recognition in the revised ESDM Permen 26/2021, it is not interesting, but at least the current regulation opens an opportunity for the industry to be interested in installing rooftop PLTS because this is indeed market demand. In the future, the revision of this Ministerial Regulation will be reviewed again and can open up exports and imports again,” said Feby.

Member of the National Energy Council, Herman Darnel Ibrahim, criticized the contents of the revised ESDM Ministerial Regulation 26/2021 which removed the rules for exporting electricity to PLN. According to Herman, this shows Indonesia’s step towards the world where it will not develop a rooftop PLTS, even though the potential is enormous and there is no land lease.

“The projection is that solar energy will be the main one in the electricity sector. Solar energy figures (in the latest national energy policy (KEN)-red) are projected in 2060 to be around 500-600 GW. In the old national energy policy (KEN) in 2050 (solar energy-ed) 120 GW, but the realization is not fast enough,” said Herman.

Norman Ginting, Director of Projects and Operations of Pertamina New & Renewable Energy (Pertamina NRE) explained his party is committed to supporting the government to achieve the net zero emission (NZE) target in 2060 or sooner. One of these efforts is to start building a portfolio in solar energy, including solar cell technology.

“We have completed more than 50 megawatts of PLTS, one of which is the largest internal Pertamina Hulu Rokan with a total planned installed capacity of 25 megawatts. In addition, Pertamina has a great interest in how to run and implement green hydrogen from solar power because we see that green hydrogen is easier in the shifting process,” said Norman.

Furthermore, Norman highlighted that society and industry have been waiting for electricity based on renewable energy. Opportunities for developing solar PV are extensive, both on-grid and off-grid. For this reason, his party needs even more massive support in developing solar energy in Indonesia.

Ashwin Balasubramanian, Associate Partner of McKinsey stated that solar energy’s technical potential is significant, more than 3000 GW. The projection is that more than 400 GW will need to be built in 30-40 years. This is also a great investment opportunity and contributes to the gross domestic product (GDP) by opening up new jobs.

“If we look at Vietnam and Thailand, they have developed 10-15 times. India developed more than 16 GW. It shows it is possible with the right conditions and aspirations,” said Ashwin.

Assessing Solar Market in ASEAN Member State

Jakarta, 25 July 2023 – Southeast Asia has emerged as a focal point for both economic development, and energy growth. The increasing energy demand within the ASEAN region is to be expected to be met through the expansion of renewable energy. Notably, certain ASEAN countries have achieved noteworthy progress in renewable energy development, exemplified by Vietnam’s exponential growth in solar energy over recent years. 

Fabby Tumiwa, the Executive Director of Institute for Essentials Services Reform and the Chairman of The Indonesia Solar Energy Association said that ASEAN must establish strong cooperation in developing solar PV manufacturing capability.

“Southeast Asia countries must ensure affordable access to this technology by establishing a solar PV manufacturing and supply chain that includes silicon ingots, wafers, cells, and other components such as low-tempered iron glass, as well as the balance of system components such as inverters and controllers,” he said.

Fabby added that Southeast Asia has the potential to become a solar PV manufacturing hub, supplying both domestic and global demand. Currently, seven Southeast Asia countries already have manufacturing capacity in various stages, with a total annual capacity of 70 GW of solar module production, with Vietnam supplying half of this capacity. 

Monika Merdekawati, research analyst for sustainable renewable energy development, ASEAN Centre for Energy (ACE) during the ASEAN Solar Summit 2023 explained that while solar energy adoption in ASEAN is on the rise, the pace of progress is insufficient to accelerate the energy transition. Vietnam’s remarkable strides in augmenting its solar capacity have been associated by diversification efforts in its renewable energy development plan in its PDP8 (Vietnam’s energy planning).

“It’s similar to Thailand who started to look for biomass development in its priority program plan,” said Monika.

She further highlighted the necessity for Indonesia to devise innovative strategies to attain its goal of achieving a 23% renewable energy mix in 2025.

Within the context of Indonesia, the state-owned utility company PT PLN heavily relies on the 2021-2030 RUPTL (Electricity Supply Business Plan) famously recognized as “green RUPTL” to expedite its renewable energy endeavors. Warsono, the EVP for electricity System Planning, PT PLN on the same occasion said that PLN aims to incorporate5 GW of renewables by 2030.

“The main challenge to deploy renewables, particularly solar, is the fulfillment of local content requirements of the PV component. It means we need to grow the local industry for solar PV components,” he said. Furthermore, PLN is committed to ensuring equilibrium between energy supply and demand of energy.

Mohammad Nazri bin Mizayauddin, Chief Strategy Officer Sustainable Energy Development Authority, Malaysia shared his view on Malaysia strategy to enhance renewable energy penetration.

“People usually look at the large-scale ground mounted solar PV, but now let’s realize the other potential in the solar rooftop. The rooftop itself is an asset,” he said.

According to Nazri, Malaysia has been facing issues related with the energy subsidy therefore the Government must make sure that the market is mature enough to slowly detach the subsidy.

Eka Satria, Director and CEO of Medco Power Indonesia presented the indispensable correlation between growth of the solar PV component industry and expanding market demand. He stressed the importance of compiling and implementing a comprehensive roster of potential projects to instill investor confidence. 

“To accelerate solar energy deployment, we need a strong PV industry in Indonesia. To grow the PV industry a long list of committed projects to guarantee the investors that their money wouldn’t be lost,” Eka explained.

Eko Agus Nugroho Director of Machinery and Agricultural Machinery Industry, Ministry of Industry agreed that the solar cell technology is advancing rapidly, urging Indonesia to accelerate its pace in keeping up with the advancement.

“There are 21 local producers making solar modules currently and the total capacity is still below 500 WP. The ministry wants to map the capability of the (solar) industries to fulfill the need from the PLN and other developers,” he said. 

Eko also revealed plans for the upcoming announcement of a consortium dedicated to local solar industry manufacture in the ensuing months.

Renewable Energy Becomes Attraction for Investors

Semarang, 4 July 2023 – Electricity is not only the essential need for households, but also drives economic activity to a large industrial scale. In addition to the need for a reliable electricity supply, large-scale industries are starting to pay attention to the source of the electricity supply. In fact, for export-oriented industries, the production process needs to be carried out with minimal emissions in advance since the implementation of carbon footprint calculations on products exported to certain countries. This means that goods or components of goods produced n from fossil energy generation will receive a higher carbon tax.

Central Java Province, which is currently developing a number of regional industries, pays close attention to the development of alternative energy sources other than fossils. This was said by the Deputy Governor of Central Java, Taj Yasin Maimoen, in his remarks at the Central Java Renewable Energy Investment Forum 2023 which was organized by the Institute for Essential Services Reform (IESR) in collaboration with the Central Java Energy and Mineral Resources Provincial Office, Tuesday 4 July 2023.

“The growth of industrial infrastructure is accompanied by high growth in energy needs. Currently it is not just energy, but energy that comes from new, renewable energy,” said Taj Yasin.

Taj Yasin added that Central Java has abundant potential for renewable energy, but its utilization has not been optimal. To drive the use of renewable energy, the Provincial Government of Central Java is promoting the installation of PV rooftops on government buildings.

“From the installation of rooftop PV in government buildings, it shows that there are 30-40% savings on electricity bills for the institutions that install them,” he said.

Previously, the Executive Director of IESR, Fabby Tumiwa, said that the availability of electricity from clean energy is the main attraction for investors to invest in one country.

“If we want to increase investment competitiveness, we must increase the availability of green energy. The supply of electricity from renewable energy is a new indicator for investors to invest their capital,” said Fabby.

Sakina Rosellasari, Head of the Central Java Investment and One-Stop Service Office (DPMPTSP), stated that Central Java is currently designing 23 projects to be offered to investors. Part of the project is related to the development of renewable energy.

“Investment interest is already approaching pre-pandemic times. We hope this meeting will improve communication and encourage investment realization in Central Java,” she said.

This trend is in line with the Indonesian Low Carbon Development study, that efforts to reduce GHG emissions must be carried out in an integrated manner in development plans to push Indonesia out of the middle-income country trap by ensuring economic growth of 5%.

Continuous Effort in Paving the Way for Solar Energy in Indonesia

press release

Jakarta, July 26, 2023 – The Indonesia Solar Summit 2023, hosted by the Ministry of Energy and Mineral Resources and co-hosted by think tank Institute for Essential Services Reform (IESR), affirms the commitment to accelerate solar deployment in the country.  Solar energy has made it significantly into Indonesia’s NZE pathway, projected at 61% of total electricity sources by 2060. A previous separate study by IESR placed solar energy as the backbone for a zero-emission energy system by 2050.

Minister of Energy and Mineral Resources, Arifin Tasrif, mentioned solar energy is a crucial strategy to achieve 23% of the renewable energy mix within the next two years before 2025. However, he also emphasized the significance of having access to technology and funding to successfully utilize solar energy and meet the renewable energy mix target. According to him, investment in solar energy will easily flow into Indonesia if there is a significant demand in the country. 

“There are two crucial factors that must be considered to accelerate the use of solar energy. The first is the availability of technology, which requires support from the industry. The second is the availability of international and domestic coverage that needs to be mobilized. The target for the renewable energy mix is 23% by 2025, but currently, it only stands at 12.5%, leaving only two years to achieve this goal. Additionally, the aim is to reduce greenhouse gas emissions by approximately 290 million tons in 2030, which has increased to 358 million tons. To achieve this, various efforts are being made, including de-dieselization programs and converting fossil-fueled motorized vehicles to electric motors, to absorb emissions,” said Arifin. 

The progress towards solar energy adoption in Indonesia remains slow. The actual installed capacity of solar PV in 2022 is 271.6 MW or far below the plan of 893.3 MW, based on data from the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), MEMR. There are several factors that have hindered widespread adoption of solar energy, including complications with land ownership, lack of local experience and unattractive tariffs. Whereas, the latest technical potential is at 3,295 GWp, acceleration of solar deployment will be critical in achieving renewable energy and NZE targets. In the short term, 18 GW of solar energy is needed to attain a 23% renewable energy mix target by 2025, with an investment value of US$14.1 billion, based on BloombergNEF and IESR study

With the announcement of Just Energy Transition Partnership (JETP) last year at G20 Summit 2022 in Bali, Indonesia – a comprehensive investment and policy plan is currently drafted in consultation with relevant stakeholders, covering early coal retirements, just transition measures, and acceleration of renewable energy development. The US$20 billion partnership aims to peak Indonesia’s power sector emission by 2030, and solar energy has become a significant part of the planning due to its techno-economic advantage and high potential for greenhouse gases emission reduction. The first version of such a plan will be unveiled in August 2023.

Rachmat Kaimuddin, Deputy Minister for Infrastructure and Transport, Coordinating Ministry of Maritime and Investment Affairs revealed that to build solar energy industrialization, Indonesia needs to prepare the demand first. 

“Reflecting in this, we intervene in the country, for example through JETP, how we minimize dependence on fossil energy, can be in several forms such as reducing the output of coal-based power plants and creating new demand,” he explained. 

He also emphasized that Indonesia’s cooperation with Singapore for green electricity requires that solar modules and batteries must be produced in Indonesia, so that the demand that arises becomes a trigger for the PLTS industry in Indonesia to form. 

“We don’t want to only import in the future. We hope that a domestic industry will be formed while we are in the process of energy transition,” he said.

Antha Williams, who leads Bloomberg Philanthropies’ Environment Program stated that developing a homegrown solar industry is a key component to advancing Indonesia’s transition to clean, affordable, and reliable energy.

“By cultivating international partnerships to mobilize capital and scale domestic solar manufacturing capacity, Indonesia has the potential to realize its net-zero energy pathway goals through rapid deployment of clean energy projects. Bloomberg Philanthropies welcomes the opportunity to support Indonesia’s goal of becoming a leader in solar energy development.”

Fabby Tumiwa, the Executive Director of IESR, stated that over the last two years, a new market has emerged, utilizing solar PV not only for selling electricity but also for producing new value-added products, such as green hydrogen and ammonia. Based on IESR data, there are currently 10 green hydrogen and ammonia projects that have been initiated since last year, intending to use solar energy as their primary electricity source. These projects are currently in the study phase and are expected to be realized within the next 2-3 years. Fabby also pointed out that experiences from various countries, including some developing ones, demonstrate that constructing Gigawatt-scale solar power plants within a year is an achievable feat.

Fabby highlighted three essential supporting factors to encourage the development of solar PV, “Firstly, it requires political will and strong, active leadership from the government, along with the establishment of transparent and sustainable policies and regulations. Secondly, there is a need for the development of an integrated ecosystem, which involves defining quality standards and guarantees for solar modules, ensuring the availability of qualified and trained human resources. Lastly, it is crucial to foster the growth of an integrated and competitive solar PV manufacturing industry.”

Indonesia’s Chairmanship in ASEAN 2023 presents an opportunity to engage the public and raise awareness about the benefits of solar PV adoption. Public outreach campaigns, educational programs, and community-driven initiatives can inform people about the environmental advantages, economic benefits, and energy independence that come with solar PV usage. Building public support and understanding can facilitate smoother and more widespread adoption of solar PV technology. Besides that, Indonesia’s Chairmanship can set a precedent for solar PV adoption in ASEAN through policy alignment, regional cooperation, investment promotion and innovation. It is timely to promote and drive domestic solar industries and supply chains in parallel with fast deployment of solar projects. 

Encouraging the Growth of Renewable Energy Investments in Central Java

Semarang, July 4, 2023 – Recognizing that renewable energy investments play a crucial role in addressing climate change and achieving the Paris Agreement, the Institute for Essential Services Reform (IESR), in collaboration with the Government of Central Java Province, held the ‘Central Java Renewable Energy Investment Forum 2023’ event. This activity is a platform to promote the potential of renewable energy investments in Central Java to achieve the target of a 21.82% renewable energy mix in Central Java Province by 2025. Exceeding the target with a renewable energy mix of 15.76% in 2022 has encouraged the Government of Central Java Province to proactively open doors for renewable energy investments to achieve the set targets and maintain regional economic competitiveness.

Fabby Tumiwa, Executive Director of IESR, explained that Central Java has abundant potential for renewable energy, particularly solar energy. According to IESR’s study, if 9 million residential buildings install rooftop solar power systems, it could generate 100,000 megawatts (MW). Additionally, if the 35 regent and mayor offices throughout Central Java install rooftop solar power systems, it would generate around 5 megawatts (MW) of solar energy. Fabby emphasized that the renewable energy potential in Central Java, including wind power plants, micro-hydro power plants, biomass power plants, and geothermal power plants outside of Central Java, reaches 198 megawatts (MW).

“The availability of renewable energy is now a key factor in attracting investments. Therefore, if we want to enhance investment competitiveness in Central Java, it is necessary to increase the availability of green energy supply. This becomes a new indicator for investors. The vast potential of renewable energy sources cannot be realized without funding for their development,” explained Fabby Tumiwa.

Vice Governor of Central Java Province, Taj Yasin Maimoen, explained that Central Java has abundant solar energy potential that is yet to be fully utilized. Therefore, the use of solar power plants needs to be accelerated. Since 2019, the Provincial Government of Central Java, through the Department of Energy and Mineral Resources, has installed solar power plants in every regional organization office, including the Central Java Regional Council and several educational institutions. The use of solar power plants is aimed at reducing carbon emissions and has economic benefits, such as reducing electricity expenses by around 30-40%.

“Central Java has competitive potential, including infrastructure support, workforce, and a strong commitment to investment. The renewable energy sector presents a new investment opportunity in Central Java, considering the growing needs of the manufacturing ecosystem, which requires alternative energy sources to meet its production. This potential needs to be managed together,” said Taj Yasin.

Sakina Rosellasari, Head of the Investment and Integrated One-Stop Service Agency (DPMPTSP) of Central Java Province, stated that Central Java has a general investment plan, to promote environmentally conscious investment policies (green investment). According to DPMPTSP records, there are 690 permits for self-supply electricity providers (IUPTLS), and the number of rooftop and steam IUPTLS is approximately 17 as of June 2023.

“There are several projects ready to be offered in the renewable energy sector in Central Java, including the development of mini hydropower plants in Banjaran and Logawa, Banyumas Regency, the construction of floating solar power plants in Wadaslintang Reservoir, the development of geothermal power plants in Candi Umbul Telomoyo and Baturaden, Banyumas Regency. Realizing investments in Central Java is expected to increase community income and provide employment opportunities,” stated Sakina.

Cahyo Purnomo, Director of Promotion for East Asia, South Asia, the Middle East, and Africa at the Ministry of Investment/BKPM, stated that the energy transition process cannot happen overnight; it requires time and commitment. The development of renewable energy is one of the efforts toward a low-carbon economy, and so creating a conducive investment climate is necessary.

“For example, in formulating regulations, predictability is essential for investors. We encourage direct investment based on a long-term perspective, not just for 1-2 years. Therefore, it is important to have a stable investment climate, and the formulation of regulations should involve all stakeholders; there should be no mere spectators,” said Cahyo.

Introducing Rooftop PV and Its Related Aspects to Students of SMK Negeri 7 Semarang

Semarang, 6 June 2023 – The Energy and Mineral Resources Office of Central Java Province is holding technical training on the construction and installation of rooftop solar PV in order to increase human capital in the electricity sector, new and renewable energy, energy conservation, especially for PV installations. The rooftop PV training was attended by 30 representatives of the third grade students from the Electrical Engineering major, SMK Negeri 7 Semarang.

The Head of SMK Negeri 7 Semarang, Haris Wahyudi, warmly welcomed this initiative and believed that the training was the right skill for his students.

“This training is a contextual skill to equip our students, whether they are going to do internships or join the labor forces. This competence is very necessary and very appropriate, we are grateful and grateful for being given the opportunity and having this activity at SMK Negeri 7 Semarang,” he said.

Haris hoped that this training could be motivating and useful, so that in the future there would be high opportunities for rooftop PV – related jobs to be filled by one of his students with good skills and provisions.

This rooftop PV training activity is one of the efforts made by the Provincial Government of Central Java through the ESDM Office to increase the knowledge and skills of the younger generation, so that they are able to take part in facing the energy transition.

Boedyo Dharmawan, Plt. Head of the Energy and Mineral Resources Office of Central Java Province in his remarks said that Central Java has abundant potential for new and renewable energy (NRE), many NRE practices have been built and utilized by the people of Central Java. He hopes that the younger generations will be able to understand and be ready to face the changes in the energy transition that will continue to occur in the future.

“Thirty-five districts/cities in Central Java Province have a lot of PV energy potential, and in the future, we will gradually abandon fossil energy because its availability continues to decrease, this is inevitable, we need to be prepared and ready to face it,” he said.

“Hopefully with this PV rooftop training, youths can build and take good care of PV management. Because if we only continue to encourage and massive development of solar energy, but the maintenance and maintenance is lacking, in the future this can become an opportunity and job opportunities for younger siblings in the future,” he continued.

In addition, Dharmawan also hopes that NRE programs can be supported by all parties, including the educational communities in Central Java Province.

“We really hope that the Education and Culture Office will encourage renewable energy development programs, so that State Vocational High School students in Central Java are ready to face energy transition,” he added.

Rizqi M Prasetyo, regional program officer of, Sustainable Energy Access, Institute for Essential Services Reform (IESR) participated as one of the speakers in the rooftop PV technical training, with the theme “The Green Superheroes: Solar Team is Saving the Planet!”. The presentation of the material began with a quiz on future PV – related job opportunities, which was enthusiastically followed by the participants.

“The material presented is clear, the delivery method is more exciting, so we don’t get bored listening, it combined with quizzes via cell phones, so the material is easy to understand, because the delivery method is so good,” said Aditya Arya Permata, one of the students.

Rizqi also gave descriptions of current and future climate conditions and employment opportunities. It is hoped that the training participants will be literate and have a high awareness that the development of renewable energy, especially solar energy, can open new jobs that are environmentally friendly.

“We hope that the solar PV training at this school can encourage and motivate the younger generation to become a generation that is environmentally conscious and understands the importance of the energy transition, so that in the future they will be able to contribute, innovate, and lead the process of transforming into a low-carbon economy through solar energy,” said Rizqi.

Apart from IESR, training materials were also delivered by the Energy and Mineral Resources Office of Central Java Province and PPSDM EBTKE. This training takes place from 6 – 9 June 2023 with materials covering Rooftop PV Policy and Development in Central Java, PV Regulations and Safety Procedures, PV Systems and Components and ends with the practice of installing rooftop PV.