Indonesia earmarks 71.3 billion USD for mega solar power project

02/06/2026 14:02
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KPL (KPL/VNA) Indonesia is planning one of the world's largest solar power development programmes, with a targeted capacity of up to 100 gigawatts (GW) and an estimated investment of 71.3 billion USD, as the country seeks to accelerate energy transition and reduce dependence on fossil fuels.


Indonesia’s Ministry of Energy and Mineral Resources (ESDM) said it has coordinated with the Ministry of Agrarian Affairs and Spatial Planning to prepare approximately 24,000 hectares of land on Java Island for large-scale solar power projects.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said that authorities have completed land assessments and identified sufficient areas for the solar development programme. In the initial phase, the government will prioritise projects with a combined capacity of around 17 GW.

At the same time, Indonesia plans to develop battery energy storage systems (BESS) with a total capacity of about 33 GW to ensure grid stability as the share of renewable energy in the national power mix continues to grow.

The project forms part of Indonesia’s broader energy transition strategy. Earlier, President Prabowo Subianto set a target of developing 100 GW of solar power between 2026 and 2028.

Observers described the target as highly ambitious, noting that Indonesia’s currently installed solar power capacity stands at only about 1.5 GW. If achieved, the programme will increase the country's solar capacity by more than 66 times within just a few years.

Indonesia, Southeast Asia’s largest economy, is also among the world's major greenhouse gas emitters due to its heavy reliance on coal-fired power generation. Expanding renewable energy is therefore seen as a crucial step towards meeting its emissions reduction commitments and achieving net-zero emissions in the coming decades.

With a planned capacity of 100 GW, the project is expected not only to strengthen Indonesia’s energy security but also to position the country as one of the leading solar energy hubs in the Asia-Pacific region.

KPL

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