Jakarta, INTI - Floating solar power plants are a potential development option in Indonesia. This was expressed by the CEO of Institute for Essential Services Reform (IESR), Fabby Tumiwa. He stated that, based on IESR modeling, Indonesia has a financially viable floating solar power plant potential of 77.8 gigawatts (GW) across 179 locations.
This potential consists of 42.5 GW of inland floating solar power plants at 143 locations and 35.3 GW of nearshore floating solar power plants at 36 locations.
This economic calculation uses the equity internal rate of return (EIRR) indicator compared to the weighted average cost of capital (WACC), and refers to electricity price assumptions based on Presidential Regulation No. 112/2022.
"The development of floating solar power plants is crucial to supporting Indonesia's ambitious target of accelerating solar energy, including the 100 GW solar power program. If well-designed, floating solar power plants can be part of the solution to providing clean electricity to industrial areas, special economic zones, regional electricity systems, and even replacing fossil fuel power plants approaching retirement," said Fabby on Wednesday, July 15, 2026.
Regulation and Permits Need to be Simplified
Fabby encouraged the integration of potential floating solar power plant locations into energy planning documents, land spatial planning, and marine spatial planning. For floating solar power plants in reservoirs or lakes, the permitting process for water resource utilization needs to be simplified.
Meanwhile, for nearshore floating solar power plants, the marine space and navigation permitting process needs to be made clearer to avoid hindering investment.
IESR also encourages the use of a competitive, price-based reverse auction mechanism to accelerate the development of floating solar power plants. This mechanism is conditional, requiring the government to first prepare an initial feasibility study so developers can compete on price, technology, and implementation capabilities.
This mechanism is considered to result in more competitive tariffs while accelerating projects already ready for development.
Accelerated Development to Optimize Benefits to the Community
Sunandar, Assistant Deputy for Electricity and Geological Development at the Coordinating Ministry for Economic Affairs, stated that Indonesia needs to accelerate and expand solar energy development to provide greater benefits to the community.
These efforts must not only focus on power plant construction but also address the entire development process.
"In addition to physical development, community empowerment also requires attention. The success of solar energy development is not only measured by the facilities built, but also by the benefits received by the community. Coordination between stakeholders is expected to produce appropriate recommendations and approaches for the government. Through good coordination, the ambition for solar energy development can be translated into more targeted implementation," said Sunandar.
Conclusion
Indonesia has a floating solar power plant potential of 77.8 GW across 179 locations, comprising 42.5 GW of inland floating solar power plants and 35.3 GW nearshore, according to IESR modeling. The development of this technology is considered capable of supporting national solar energy targets, including the 100 GW solar power plant program. IESR encourages the inclusion of potential floating solar power plant locations in energy and spatial planning, along with simplification of permits and the implementation of a reverse auction mechanism.
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