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Why Indonesia

Indonesia’s Solar Future: Government Roadmap and the Crucial Role of the Private Sector

  1. National Roadmap and Total Solar PV Targets
  • The government is targeting the installation of 100 GW of solar PV across 80,000 villages nationwide by 2060, including 11.05 GW by 2030, 23.27 GW by 2040, and a total of 100 GW by 2060.
  • Under the Electricity Supply Business Plan (RUPTL 2025–2034), Indonesia aims to add ~42.6 GW of renewables, with solar PV as the main contributor.

  • To reach the 75 GW renewable target by 2040, the country needs to add around 5 GW of renewables per year.

    1. Projected Private Sector Share (Next 20 Years in Domestic Market)
    • Rooftop Solar (C&I + households): Could grow from under 0.2 GW today to 10–15 GW by 2045, mostly driven by private investment.
    • Utility-Scale IPP Projects: At least 15–20 GW of solar capacity by 2045 will likely be built by private independent power producers under PLN offtake contracts.
    • Total Private Contribution in Domestic Market (2025–2045): Roughly 25–30 GW, representing ~50% of all new solar capacity in Indonesia’s domestic market over the next 20 years.
    1. Why Private Sector is Key in Indonesia
    • High electricity tariffs for industry make rooftop solar financially attractive.
    • Corporate ESG goals push MNCs and local conglomerates to adopt renewable power.
    • Government budget limits mean private IPPs are needed to meet national solar targets.
    • Growing financing schemes (leasing, green bonds, ESG funds) support private investment in solar.
    Conclusion: In the Indonesian domestic solar PV market, the private sector is expected to supply around 25–30 GW of new solar over the next 20 years, mainly through C&I rooftop solar and utility-scale IPP projects. This would make up about half of Indonesia’s total solar deployment in the period.