Indonesia has set an ambitious target to expand its solar power capacity to 100 gigawatts by 2029, a dramatic increase that underscores both the opportunities and challenges in the global transition to renewable energy. Currently, the country’s solar capacity stands at just 1.5 gigawatts, making the planned growth nearly 67 times larger in just three years.
The initiative was launched by Prabowo Subianto, Indonesia’s Minister of Defense, who emphasized the critical need for energy independence in light of global market volatility. Prabowo highlighted the urgency following recent tensions in the Strait of Hormuz and the resulting disruptions in fossil fuel supply chains. “If we still want to be independent, energy self-sufficiency is essential,” he said, pointing to electrification and renewables as key strategies to reduce reliance on imported oil and gas.
Economic factors are a primary driver of Indonesia’s clean energy ambitions. The cost of solar power generation has dropped approximately 90% since 2010 and now provides electricity at a lower price than coal-fired plants in Indonesia, where coal generation costs are estimated at 10 to 15 cents per kilowatt-hour—about twice that of solar power. This trend is mirrored across Southeast Asia, where solar investments surged 59% year-on-year in the first half of 2026, reaching $7.3 billion.
The government is also focusing on electrified transport and combined solar-battery systems to replace expensive and polluting diesel generators, particularly on smaller islands. Declining battery prices have encouraged investments in energy storage, enabling continuous clean power supply.
Despite the ambitious announcements, experts caution that realizing such a leap in solar capacity will require substantial policy support, regulatory clarity, and significant financial investment. Currently, Indonesia’s state-owned utility company, PLN, projects a much more modest solar capacity increase of 6 gigawatts by 2030 and plans for expanded fossil-fuel generation alongside renewables. Of the 14 solar plants recently announced by Prabowo, only two are operational, six are under construction, and the remainder still seeks funding.
The country’s reliance on fossil fuels and rapidly growing energy demand complicate efforts to curb carbon emissions. Indonesia is also the world’s largest producer of nickel, a key metal in electric vehicle batteries, whose refining process is powered by coal-fired plants. Efforts to retire coal capacity through the $200 billion Just Energy Transition Partnership (JETP), supported by wealthy nations including the United States, Japan, and Europe, have faced delays and limited funding disbursement. Indonesia’s government recently canceled the planned early closure of a coal plant in West Java, raising further concerns about the pace of coal phase-out.
Financing the solar expansion, estimated to cost around $73 billion, remains a significant hurdle. Domestic investment capacity is insufficient, with total power sector spending last year at $4.5 billion. Energy analysts emphasize the need for increased international investment and clearer policy frameworks to attract private capital and accelerate deployment.
While some critics view Prabowo’s solar target as overly ambitious or unrealistic, it reflects the substantial scale of investment and policy shifts required globally to achieve a low-carbon future and address climate change. Indonesia’s solar ambitions highlight both the potential for renewable energy transformation and the persistent obstacles that emerging economies face in this transition.