The growth of solar energy or solar power plants (PLTS) is relatively slow compared to the targets of the National Energy General Plan (RUEN) and PLN's Electricity Supply Business Plan (RUPTL).
The findings were highlighted in the Indonesia Solar Energy Outlook (ISEO) 2025 report from think tank Institute for Essential Services Reform (IESR).
In addition, IESR in the Powering the Future report assesses that Indonesia is only in the early stages of adopting energy storage systems.Solar Electricity Capacity in the World Adds 593 Gigawatts This Year IESR Executive Director Fabby Tumiwa explained that Indonesia's solar power capacity must grow by 9-15 gigawatts (GW) per year between 2024-2030.
This needs to be implemented in line with the tripling of global renewable energy capacity by 2030 to prevent the Earth's temperature from rising by 1.5 degrees Celsius under the Paris Agreement.
Harmonizing Astacita, Gizi-Cita, and Jiwa-Cita for Healthy Indonesia. Fabby also encouraged the government to increase renewable energy targets in 2025 and 2030 by making PLTS the backbone of the energy transition. An ambitious increase in the renewable energy mix target also needs to be synergized with a more ambitious emission reduction commitment in the Second Nationally Determined Contribution (SNDC).
Electricity Demand to Rise 4 Times by 2050, Indonesia Needs Solar and Wind Energy Penetration He explained that the current plan to add solar energy capacity is still far from what Indonesia should build to be in line with the Paris Agreement targets. “It is true that PLTS has intermittency challenges, but making it an excuse to limit PLTS development is not appropriate,” Fabby said at the launch of the two studies on Tuesday (15/10/2024), as quoted from a written statement.
Fabby said, there are many countries with PLTS penetration above 10 percent of capacity, but do not experience interruptions in the reliability of electricity supply, let alone blackouts. He added that the intermittency of PLTS can be overcome with the integration of energy storage in the electricity system.
Government Reveals Indonesia Has 3,300 GW of Solar Energy Potential IESR Electricity and Renewable Energy Analyst Alvin Putra Sisdwinugraha revealed that the trend of solar energy investment in Indonesia has doubled, from 68 million US dollars in 2021 to 134 million US dollars in 2023. Alvin assessed that the stability of regulations and the availability of the PLTS market in Indonesia will be a determining factor in attracting solar energy investment.
According to him, the solar energy project plan of nearly 17 GW can be a foundation for building strategies and investments in this sector. He added that the rooftop solar PV quota policy and the easing of Domestic Component Level (TKDN) requirements could provide a significant boost in boosting domestic demand. "However, it needs strong signals from the government in the form of incentives and clear projects. The year 2025 will be a key year in evaluating the effectiveness of existing solar energy regulations, as well as ensuring adequate infrastructure to support large-scale penetration of solar energy,” Alvin said.