Indonesia’s president has announced plans for the government to progressively expand solar power capacity to 100 GW, starting by developing 30 GW of solar power plants in 2026 while phasing out 13 GW of diesel power plants in 2026.
He highlighted Indonesia’s substantial solar energy potential, given the country’s near year-round exposure to sunlight. It makes no sense for the remote islands to have to wait for ships to bring diesel fuel to generate electricity. With solar power plants, they can also build their energy independence.
Based on calculations by the Coordinating Ministry for Economic Affairs, this expansion could lower electricity generation costs by up to USD4bn per year. The large-scale deployment of solar energy is also expected to reduce fuel import requirements and generate foreign exchange savings.
Consistent with this solar development strategy, the Indonesian President further called for every village to be equipped with a 1 MW solar power plant.
According to the latest data the solar and wind capacity are still limited, but solar PV is increasing at rapid pace, from 0.9 GW in 2024 to 1.5 GW in 2025. The country has a total power capacity of 99 GW, distributed as follows: coal 52%, gas 25%, hydroelectricity 8%, oil 8%, biomass 3%, and other renewables 4% (end of 2025). Its total renewable capacity reached 15.1 GW at the end of 2025.