Indonesia's 100 GW Solar Program Needs Quick, Measurable Steps: IESR

The ambitious Indonesian government program to develop 100 gigawatts (GW) of solar power generation capacity requires swift, well-measured actions to achieve its target, according to the Institute for Essential Services Reform (IESR).

Fabby Tumiwa, CEO of IESR, emphasized that the program's success hinges not only on the sheer capacity target but also on the government's ability to build a rapid, scalable, and replicable implementation framework. He suggested that initial efforts should prioritize programs that can quickly reduce diesel fuel consumption, attract investment, improve access to clean electricity for communities, and build national confidence in executing large-scale clean energy projects.

"Quick wins are important to demonstrate that the 100 GW solar program is not just an ambitious capacity target, but a real strategy for energy system transformation," Tumiwa stated during a media briefing on Friday, May 29, 2026. President Prabowo Subianto has previously affirmed the government's commitment to accelerating the 100 GW solar initiative as part of Indonesia's energy transition and national energy independence agenda, with a target completion before 2029.

IESR has identified three priority agendas for the program's initial phase: accelerating the phase-out of diesel power plants (PLTD), fast-tracking rooftop solar installations and Battery Energy Storage Systems (BESS), and developing management models for village-owned solar power plants through village cooperatives or village-owned enterprises (BUMDes). Tumiwa highlighted the phase-out of diesel plants as a particularly strategic entry point, given Indonesia's thousands of diesel generators, especially in remote and island regions. PLN's 2025-2034 Electricity Supply Business Plan indicates approximately 3,996 diesel generators across 1,234 remote locations, with a goal to reduce diesel-based electricity supply by 80 percent by 2030.

However, the procurement process for these diesel phase-out projects has faced challenges. A 2022 project auction saw low bidder participation, and a 2023 Letter of Intent (LoI) signing with a consortium remains stalled due to tariff agreement issues. Furthermore, a ministerial decree from the Ministry of Energy and Mineral Resources regarding the upper price limit for solar and BESS-based diesel phase-out projects has yet to be issued.

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Quick wins are important to demonstrate that the 100 GW solar program is not just an ambitious capacity target, but a real strategy for energy system transformation.