Can solar power improve Indonesia's energy security?

Indonesia Solar Energy Outlook 2025 highlights the crucial role of solar power in improving Indonesia's energy security. The report analyzes how solar PV can help reduce dependence on fossil energy, improve the reliability of electricity supply, and address the challenges of climate change.

What is Indonesia's solar energy capacity?

The capacity of solar energy in Indonesia is steadily climbing. With total capacity reaching over 322.6 MW as of the first half of 2023, this is an increase of over 800% in the last 10 years. This progress is part of Indonesia’s solar energy plan, which targets 5 GW of installed capacity by 2030.

Can Indonesia harness solar energy?

While solar energy capacity is increasing in Indonesia, the current installed capacity is just a fraction of the potential capacity of solar power development. As a nation that straddles the equator, it gets direct, high-intensity solar irradiance, putting it in an ideal position to harness solar energy.

Could foreign companies be involved in Indonesia's solar power growth?

The project was a joint venture between Indonesia’s state utility company and Masdar, a United Arab Emirates-based renewable energy company. It highlights the potential for foreign companies to be involved in Indonesia’s solar power growth and signals a favourable regulatory and economic climate for investors.

What is Indonesia's solar energy plan?

This progress is part of Indonesia’s solar energy plan, which targets 5 GW of installed capacity by 2030. The growth of solar power in Indonesia reflects not just a commitment to shift away from its fossil fuel-dominated energy system but also recognises the immense potential the solar energy holds in the Indonesian archipelago.

How can Indonesia build a robust solar PV manufacturing sector?

One of the primary requirements in building a robust solar PV manufacturing sector is attracting substantial investments. To achieve this, Indonesia may consider incentives to entice foreign and domestic investors. These could include: Grants for plant development.