2 days ago
The government has set a long-term target of 100GW of installed solar capacity by 2060, which includes 80GW of decentralised solar and 20GW of centralised capacity.
The decentralised segment will concentrate on village-level mini-grids, deploying approximately 1MW solar systems paired with 4MWh battery energy storage systems (BESS) across around 80,000 villages to replace diesel-based power. If successful, the 1MW pilot solar project in Sumenep, East Java, could be expanded to other regions.
Simultaneously, large-scale solar projects will support both grid and off-grid demand, alongside plans to deploy 320GWh of battery storage to manage intermittency and provide round-the-clock electricity. In the initial phase, the government will prioritise 13GW of capacity, focusing on regions with existing electricity distribution networks.
Indonesian President Prabowo Subianto has assigned Danantara the task of developing financing structures and establishing partnerships with private technology providers to accelerate solar deployment, particularly for rural electrification.
Data from the Ministry of Energy and Mineral Resources (MEMR) indicates that about 5,758 villages, encompassing roughly 1.2 million households, remain without electricity across the archipelago.
By the end of 2025, Indonesia’s cumulative solar capacity reached 1.49GW, with renewables accounting for 15.75% of the energy mix, marking a 1.1% year-on-year increase.
