Indonesia's installed solar capacity reached 717.71 MW by August, according to the Institute for Essential Services Reform (IESR). In its recent “its “Indonesia Solar Energy Outlook 2025” report, IESR Executive Director Fabby Tumiwa noted that Indonesia needs to “catch up” with the global solar trend after a downturn in the industry over the past two years. However, the outlook for solar in Indonesia is now "promising."
The report highlights that state utility PLN plans to add 7.9 GW of solar capacity by 2033, while new policies from the Ministry of Energy and Mineral Resources aim to bring over 5 GW of rooftop solar within the next five years. Currently, there are 16.92 GW of solar projects in development across Indonesia, with a long-term projection of 350 GW to 550 GW by 2050.
Investment in solar energy in Indonesia has also grown, nearly doubling from $68 million in 2021 to $135 million in 2023. As of August 2024, $112 million in solar investments has been announced.
Tumiwa emphasized that Indonesia must be more ambitious in its solar targets to meet the Paris Agreement. He suggested the country should aim for 77 GW of solar capacity by 2030, requiring 9 GW to 15 GW of new capacity per year. He also dismissed concerns about solar PV intermittency, pointing out that countries with higher solar penetration haven't experienced significant supply issues, thanks to energy storage integration.
A separate IESR report on energy storage estimated that Indonesia would need 60.2 GW of energy storage by 2060 if solar and wind make up 77% of the country’s power generation. Although large-scale energy storage systems are still lacking, private sector initiatives and a potential electricity export scheme to Singapore could help accelerate the adoption of energy storage, with capacity expected to reach 33.7 GWh by 2030.
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