The Indonesian government has unveiled a new initiative aimed at deploying 100 GW of solar capacity. The “Distributed Solar Self-Sufficiency Program” (hereinafter referred to as the Program) includes 80 GW of solar power, which will be deployed in the form of 1 MW solar arrays paired with 4 MWh battery energy storage systems (BESS). These integrated solar-storage microgrids will be installed across 80,000 villages in Indonesia and managed by the “Merah Putih Village Cooperatives.”
The Program also involves the construction of 20 GW of centralized solar power plants, incorporating both grid-connected and off-grid systems. The project aims to meet residential electricity demand while promoting productive economic activities in rural areas.
Fabby Tumiwa, CEO of the Jakarta-based Institute for Essential Services Reform (IESR), stated in an interview with PV Magazine that solar-plus-storage systems offer lower electricity costs compared to diesel generators currently powering Indonesian villages and remote islands. He explained, “The levelized cost of electricity (LCOE) for this system over 25 years is estimated to be approximately $0.12–0.15 per kWh, while the LCOE for diesel generators ranges from $0.20 to $0.40 per kWh.”
Tumiwa also noted that building 100 GW of solar within five years would be highly challenging. IESR has proposed several recommendations for the Program, such as collaborating with provincial universities and vocational schools to train technical workers for solar installations, providing training for operation and maintenance as well as bulk procurement activities, and offering blended financing solutions to ensure funding for the entire initiative.
The Program is still under development and is being prepared by the Indonesian Ministry of Energy and Mineral Resources, the Coordinating Ministry for Economic Affairs, and the Coordinating Ministry for Food.
IESR estimates Indonesia’s potential solar power capacity to be between 3,300 GW and 20,000 GW. The country’s National Energy Policy for 2025–2060 targets 108.7 GW of solar power generation by 2060.
