The Indonesia Institute for Essential Services Reform (IESR) recently released its “2025 Indonesia Solar Outlook” report, revealing that as of August, the country’s installed photovoltaic capacity reached 717.71 MW.
IESR Executive Director Fabby Tumiwa emphasized that following a downturn in the solar industry over the past two years, Indonesia needs to “catch up” with global solar trends. He further stated that this trend is reversing, and the future of Indonesia’s photovoltaic industry looks promising. According to IESR, Indonesia’s state electricity company, PLN, plans to increase renewable energy generation by adding 7.9 GW of solar capacity by 2033. Additionally, policy changes from the Ministry of Energy and Mineral Resources are expected to add over 5 GW of rooftop solar capacity within five years.
The report indicates that as of August 2024, there are 16.92 GW of announced solar projects in preparation nationwide, with an anticipated addition of 350 GW to 550 GW of solar capacity by 2050.
It also noted that Indonesia’s solar-related investments nearly doubled, increasing from $68 million in 2021 to approximately $135 million in 2023. By August 2024, announced solar investments reached around $112 million.
Tumiwa urged the Indonesian government to set more ambitious solar deployment targets, explaining that the current plans’ capacity is insufficient to meet the goals of the Paris Agreement. IESR asserts that to achieve these goals, Indonesia needs to add 77 GW of solar generation before 2030, equivalent to an annual increase of 9 GW to 15 GW in photovoltaic capacity.
Tumiwa stated, “The photovoltaic industry indeed faces several intermittent challenges, but limiting development because of these issues is unreasonable. Many countries have solar penetration rates exceeding 10% of total generation capacity without facing power supply issues or blackouts. Intermittency can be addressed by integrating energy storage systems into the grid.”
