August 26, 2026 | 11:50 am
TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources Bahlil Lahadalia has revealed the development scheme for a solar power plant project with a capacity of 100 gigawatt-peak (GWp). He stated that the government will first encourage participation from business entities and independent power producers (IPPs).
"If the price is competitive, we will offer it to IPPs. If it is not competitive and no one wants it, the government will take over through Danantara using financing that aligns with the President's instructions to be efficient, effective, and affordable," Bahlil said during the launch of the 100 GWp solar power plant project in Bali, quoted from the Ministry of Energy and Mineral Resources' live stream on YouTube on Tuesday, August 25, 2026.
Bahlil stated that developing the 100 GWp solar power plant project requires an investment of about US$73 billion, or more than Rp1,140 trillion. According to him, the program carries the potential to save energy subsidies of up to Rp73.9 trillion per year.
He mentioned that the solar power project will be carried out on a massive scale over a three-year period. For projects launched in the initial phase, the estimated generation cost stands at around US$5–US$6 per kilowatt-hour, excluding battery storage.
Previously, President Prabowo Subianto set a target to complete the 100 GWp solar power plant project in under three years. Prabowo noted that national power generation capacity currently stands at approximately 88 GW. This existing capacity comes from power plants fueled by coal, oil, gas, and renewable sources such as geothermal energy.
"As a comparison, currently all our electricity is 88 GW, from coal, oil, gas, and geothermal. And we will build 100 GW, and we are serious about it. Our target is 100 GW in three years," Prabowo said.
Director of Research and Innovation at the Institute for Essential Services Reform Raditya Wiranegara stated that building 100 GW of solar power plants faces technical challenges and is difficult to achieve within a short timeframe. "Especially since domestic solar module production capacity currently stands at around 14 GW per year," he noted.
Consequently, he emphasized the need for a realistic implementation phase to ensure the program remains sustainable without disrupting system stability or industry readiness. With a target of 100 GW in three years, there will be a significant gap between capacity needs and actual demand, according to Raditya. Moreover, he mentioned that constructing new factories or pursuing import options still requires considerable preparation and logistical lead time.
Chairperson of the Expert Council of the Indonesian Solar Energy Association Herman Darnel stated that the government's target must consider industrial capacity, supply chains, solar panel module prices, and domestic human resource readiness.
According to Herman, the current capacity of national engineering, procurement, and construction firms may not even be equipped to handle a sustainable buildout of 5 GW in solar capacity per year. In addition, large-scale solar power development must be accompanied by the readiness of supporting infrastructure, particularly the electrical transmission grid and technical personnel.
Evaluating the readiness of the industrial ecosystem, Herman expressed skepticism that the target can be met. "From what I see, considering current conditions, it cannot be realized in three years," he told reporters in Jakarta on Thursday, August 6, 2026.
Irsyan Hasyim contributed to this article
Read: Prabowo Launches 100 GW Solar Power Project
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