Jakarta, INTI - The Indonesian government is prioritizing the transformation of its solar energy industry, targeting approximately 100 gigawatts (GW) of capacity within the next two to three years as part of its broader green energy development agenda.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the policy follows President Prabowo Subianto’s directive to accelerate Indonesia’s transition toward renewable energy.
Speaking in Jakarta on Thursday, August 20, 2026, Airlangga said green energy is among the government’s key priorities, particularly the shift toward a solar-based industrial ecosystem, with a target of around 100 GW within two to three years.
Government Prioritizes Diesel Power Replacement
President Prabowo has set a target to increase solar power generation capacity to 100 GW as part of efforts to reduce Indonesia’s dependence on fossil fuels.
The target also supports the government’s broader goal of achieving 100% electricity generation from renewable energy within the next decade.
Solar power development has been incorporated into PT PLN’s Electricity Supply Business Plan (RUPTL) through 2034, with a planned capacity of 17.1 GW.
Airlangga said the government’s priority this year includes a dieselization replacement program, which aims to replace diesel-powered electricity systems on small islands with solar-based generation. He described the initiative as an urgent and practical need for Indonesia.
Achieving the target will require support from multiple stakeholders, including strategic partnerships with international partners such as Germany.
Airlangga noted that the transition will create significant demand for technology and capital goods, providing opportunities for German companies to participate in Indonesia’s rapidly developing solar energy sector.
Indonesia Seeks to Accelerate Energy Transition Financing
Germany remains one of Indonesia’s strategic partners under the Just Energy Transition Partnership (JETP).
Indonesia has secured international JETP funding commitments of approximately US$21.4 billion to support the country’s clean energy transition and decarbonization efforts.
However, Airlangga said the utilization of these funds has progressed relatively slowly, with only around US$4 billion deployed so far. He emphasized the need to accelerate implementation and financing.
German Minister for Economic Cooperation and Development Reem Alabali Radovan said renewable energy development aligns with the two countries’ commitment to achieving the Sustainable Development Goals (SDGs) by 2030.
She highlighted opportunities for German companies to contribute their extensive renewable energy expertise and technology to Indonesia.
Radovan also emphasized the importance of collaboration among academia, the public sector, and private companies to develop more sustainable solutions for the future.
Conclusion
Indonesia is accelerating its solar energy transformation with a 100 GW capacity target, supported by renewable energy investment, diesel-to-solar conversion, and international partnerships to advance the country’s green energy transition.
Read more: IPB University and Germany Develop Solar Cold Storage to Support Energy Transition