Enviro News Asia, Bali — Indonesia’s 100 GW solar power program must move quickly from political commitment to measurable implementation, the Institute for Essential Services Reform (IESR) said following the program’s launch and the groundbreaking of a solar power plant and battery energy storage system in Bali.
President Prabowo Subianto, together with the Ministry of Energy and Mineral Resources (ESDM), launched the 100 GW Solar Power Plant (PLTS) and Battery Energy Storage System (BESS) program. The government also began construction of a 305 MWp solar power plant and a 1 GWh BESS owned by state electricity company PLN in Gilimanuk, Bali, on August 25, 2026.
The national program is designed to support diesel replacement, rural electrification, productive villages, electricity grid strengthening, and energy supplies for industrial areas. The government plans to integrate BESS into the electricity system to improve reliability and accommodate the variable nature of solar power.
Energy and Mineral Resources Minister Bahlil Lahadalia said the 100 GW program would require an estimated investment of US$73 billion. The program is also projected to create around 5.52 million jobs and generate annual subsidy savings of approximately Rp73.9 trillion.
Bahlil stressed that solar power development should generate greater economic value for Indonesia. Domestic production of solar panels and batteries, supported by Indonesian workers, could strengthen energy independence while creating jobs and increasing domestic economic value.
IESR said the program could strengthen Indonesia’s energy security by increasing the use of domestic renewable energy resources and reducing dependence on fossil fuels. In Bali, the development of solar power and BESS could also reduce the island’s dependence on electricity supplies from outside the region.
The combination of solar power and battery storage is expected to improve Bali’s electricity reliability by providing local electricity generation and greater flexibility in managing fluctuations in solar energy production.
Bali was selected as the location for the program’s launch because of its strategic commitment to clean energy. The provincial government has pursued a Bali Net Zero Emission 2045 vision together with IESR and other stakeholders since 2023. IESR said central government and PLN investment in solar power and BESS could help Bali achieve energy independence and net-zero emissions faster.
IESR Chief Executive Officer Fabby Tumiwa said the launch and groundbreaking should mark the beginning of a much larger implementation phase.
“The success of the 100 GW Solar Power Program should not be measured by how many projects are groundbreaking, but by how many gigawatts of solar power can be built, connected to the grid, and reliably generate electricity before 2029,” Fabby said.
IESR warned that achieving 100 GW in less than four years would be highly ambitious and would require major innovations in implementation. The institute said Indonesia needs a strong and consistent national implementation architecture supported by regulatory certainty.
IESR also called for a dedicated program leadership structure with sufficient authority to coordinate ministries, PLN, regional governments, industry, financial institutions and project developers.
To support the target, IESR outlined six priority measures.
First, the government should immediately finalize a Presidential Regulation as the legal framework for the 100 GW solar program. The regulation should establish targets, institutional responsibilities, coordination mechanisms, financing, procurement procedures, transparency and accountability. IESR also recommended aligning the National Energy Plan (RUEN) and PLN’s Electricity Supply Business Plan (RUPTL) with the additional solar capacity and designating the program as a National Strategic Project.
Second, the government should establish a clear annual project pipeline through 2029, including project locations, capacity, procurement schedules, grid requirements and BESS deployment plans. Such a pipeline would provide greater certainty for investors and industry.
Third, procurement should be accelerated through competitive, transparent and bankable auctions. IESR said this approach could help achieve competitive electricity prices while attracting large-scale private investment.
Fourth, Indonesia needs to strengthen electricity system readiness through transmission and distribution expansion, grid digitalization, additional BESS capacity, greater operational flexibility and the removal of capacity constraints for rooftop solar.
Fifth, the government should develop a national supply chain through gradual and realistic local-content policies that improve domestic competitiveness without slowing solar deployment or increasing costs.
Sixth, IESR recommended a multi-track implementation approach. The development of 100 GW of solar capacity should not depend solely on PLN projects. Regional governments, cooperatives, communities, industrial and commercial sectors, rooftop solar developers and independent power producers should also be enabled to contribute to the program.
Fabby said Indonesia already has the necessary foundations, including mature solar technology and abundant solar resources. However, he stressed that regulatory certainty, strong governance, bankable projects, electricity grid readiness and institutional capacity would determine whether the ambitious 2029 target could be achieved. (*)
