Jakarta, INTI - The government is accelerating the development of solar power plants as a strategy to reduce national energy costs while reducing reliance on fossil fuel-based power plants. This shift in electricity generation systems is considered capable of delivering significant long-term efficiencies.
The Ministry of Energy and Mineral Resources (ESDM) stated that converting gas and diesel-based power plants to solar power plants has the potential to save up to Rp73.9 trillion in generation costs annually.
Jisman P. Hutajulu, Expert Staff to the Minister of ESDM for Strategic Planning, said that the efficiency comes from comparing the generation costs of solar power plants combined with battery energy storage systems (BESS), compared to gas and diesel-fired power plants still in use in several regions.
"Once the 100-gigawatt solar power plants program is completed, it will replace the highly wasteful diesel power plants, both in the eastern region and in Java and Bali, which are also quite significant," Jisman said at the HIPMI Power Development Forum 2026 in Jakarta on Wednesday, May 20.
The government is targeting the development of solar power plants with a total capacity of 100 GW between 2026 and 2028 as a strategy to accelerate the national energy transition. To achieve this target, investment requirements are estimated to reach US$71.3 billion, or approximately Rp1,140 trillion.
Economic Impact and Challenges of Solar Energy Development
In addition to electricity cost efficiency, solar power plant development is also projected to have a broad economic impact. This project has the potential to absorb approximately 2.8 million workers in the construction sector and 1.5 million to 3.1 million workers in the manufacturing sector.
Large-scale solar power plant development is also expected to reduce energy imports, with a substitution value of US$14.4 billion to US$28.9 billion, and contribute up to US$26.6 billion to the gross domestic product.
However, solar energy development still faces challenges in the readiness of electricity grid infrastructure. The government estimates that the construction of a supergrid transmission network of approximately 48,000 kilometers is required to ensure optimal distribution of renewable energy-based electricity.
Jisman said that supergrid development is a crucial factor in addressing the imbalance between renewable energy sources and electricity demand, which is currently concentrated on Java, while much of the renewable energy potential lies outside Java.
In PLN's 2025–2034 Electricity Supply Business Plan (RUPTL), the government targets an additional 69.5 GW of generating capacity. Of this total, 42.6 GW (61 percent) will come from new and renewable energy sources, supported by 10.3 GW of energy storage systems.
Conclusion
The government is accelerating the development of solar power plants as part of the energy transition to reduce electricity costs and reduce dependence on fossil fuel power plants. Ministry of ESDM stated that the development of up to 100 GW of solar power plants has the potential to save approximately IDR 73.9 trillion per year in electricity generation costs by replacing diesel and gas power plants. In addition to improving energy efficiency, this project is also projected to create millions of jobs and reduce energy imports.
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