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