Jakarta, May 28, 2025 – Indonesia has a target of reducing energy sector emissions in the Enhanced Nationally Determined Contribution (E-NDC) of 358 million tons of carbon dioxide equivalent with its own efforts in 2030. The use of renewable energy, especially solar, is one of the strategies to meet Indonesia’s climate targets, especially in the energy sector. The development of utility-scale solar power plants requires large areas of land and this is often a challenge in developing solar power plants.
Indonesia has succeeded in combining floating solar power plants with the Cirata floating solar power plant with a capacity of 145 MW. The Ministry of Energy and Mineral Resources has released data on the potential for floating solar power plants in reservoirs and dams in Indonesia of 14 GW. The 2025 – 2034 Electricity Supply Business Plan (RUPTL) document shows that there will be an additional 17.1 GW of solar energy. Deon Arinaldo, Energy Transformation System Program Manager, Institute for Essential Services Reform (IESR) at the Floating Solar Webinar Realizing Indonesia’s Transition: The Economics of Floating Solar Power Reliability and Energy Storage Systems, stated that the challenge of developing the floating solar power ecosystem will be in the first 5 GW.
“When we have exceeded 5 GW, this means that we already have a mature policy framework and the market can accept the mechanism,” said Deon.
Arionmaro Asi Simaremare, PLN Energy Transition Manager, said that the target of adding solar energy in the RUPTL of 17.1 GW could be met by floating solar power.
“Currently, there are several projects (floating solar power) that are being prepared, including Saguling, Karangkates, Jatiluhur, and Kedung Ombo. It is possible that there will be more,” he said.
Arionmaro added that his party is currently focusing on PLN’s dams, considering the completeness of the dam profile data such as bathymetry, embankments, and fluctuations in the dam’s water level. This makes it easier to work on floating PV on PLN’s dams in addition to licensing issues.
He added that the PUPR Ministry has also sent a list of water bodies owned by the PUPR Ministry that can be used as floating PV locations but checks still need to be carried out regarding local permits, dam designation, and social conditions of the community.
David Silalahi, PhD Graduate, The Australian National University, explained that the floating PV system is an option that is worth exploring for the Indonesian context considering the geographical location and the energy needs that will continue to grow in the future. This is partly based on the comparison of the economics for the price of generating solar and fossil energy electricity which has been competitive, with the calculation of global coal prices.
“Assuming a stable coal price of USD 100 per ton, the price (of electricity) for solar PV is already competitive, in the range of 5-6 cents per kWh,” said David.
Alvin Putra Sisdwinugraha, IESR’s Power System and Renewable Energy Analyst explained that in the last 2-3 years, floating PV has been more favored by developers due to several reasons, including the location of dams or water bodies that have the potential to become floating PV locations, most of which are located on the island of Java, which is the center of electricity load and demand.
“To encourage floating PV to be more massive in Indonesia, at least we need to improve two things, namely related to the governance of the floating PV project and technically related to the operating system that needs adjustment,” explained Alvin.
