The Government of Indonesia is accelerating its renewable energy ambitions, with plans to deploy up to 100 GW of solar capacity within the next three years as part of efforts to strengthen energy security amid global supply disruptions.
The initiative includes the parallel rollout of battery energy storage systems to support grid stability and reduce reliance on fossil fuels. The push comes as geopolitical tensions in the Middle East continue to impact global energy markets, prompting Indonesia to diversify its energy mix and reduce exposure to imported fuels.
Despite the ambitious target, challenges remain. Renewable energy currently accounts for around 16 per cent of Indonesia’s energy mix, with solar contributing just 1.7 per cent, while coal continues to dominate. State utility Perusahaan Listrik Negara has also been identified as a critical bottleneck, with delays in procurement processes and unclear tariff frameworks affecting project viability and private sector participation. Without clear pricing structures and updated planning frameworks, large-scale deployment may face further delays.
The government estimates that approximately USD78 billion will be required to achieve the 100 GW target, with officials emphasising the need to improve investment conditions and ensure projects are financially viable. At the same time, Indonesia continues to pursue complementary energy strategies, including expanding biofuels and geothermal energy, while maintaining coal as a backup energy source.
