Indonesia's 100 GW Solar Target Needs Industry Support, Report Finds

Indonesia's ambitious target of developing 100 gigawatts (GW) of solar power capacity may not automatically translate into growth for the domestic solar panel industry, according to a new report by the Institute for Essential Services Reform (IESR). The IESR argues that strengthening market certainty, refining regulations, and bolstering the domestic supply chain are crucial prerequisites for the expansion of solar power to generate significant value for national industries.

The findings were presented during the Indonesia Solar Summit (ISS) 2026 in Denpasar, Bali. At the event, IESR launched a roadmap for developing the domestic photovoltaic (PV) supply chain industry in Indonesia. The report highlights that while Indonesia possesses the potential to build an integrated PV industry, this opportunity remains elusive without a developed domestic market and clear government policies that provide business certainty.

Fabby Tumiwa, CEO of IESR, outlined four key aspects necessary for national solar power development: market, industrial capacity, human resources, and research and development. He stressed the government's role in increasing the absorption of domestic solar products through clear, consistent, and bankable procurement schemes. Furthermore, Indonesia needs to accelerate the development of integrated production capacity, including for wafers and polysilicon. Tumiwa also pointed out the need for a workforce skilled in the latest solar technologies and strengthened collaboration between government, industry, universities, and research institutions.

IESR identified several obstacles hindering investor confidence, including changes in local content level (TKDN) policies, lengthy permit processes, and delayed incentives. The institute urged the government to implement more stable, transparent, and business-certainty-providing regulations. The roadmap proposes a gradual development strategy: strengthening module and solar cell production capacity, streamlining permits, and offering blended financing schemes for manufacturing investments by 2030. Between 2030 and 2040, the focus should shift to building wafer and polysilicon industries, with a long-term vision up to 2060 for developing next-generation solar panel technologies, enhancing national research, and establishing solar module recycling systems. The report also suggests tailoring solar energy development to regional potential, citing Bali as a candidate for low-carbon tourism powered by solar energy and West Nusa Tenggara for a solar industry and energy storage ecosystem.