Antara News·Indonesia·Thursday, August 20, 2026 at 08:06 AM

Indonesia prioritizes solar power in green industry transition

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Arnidhya Nur, Resinta Sulistiyandari

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has highlighted solar power as a key priority in Indonesia’s transition toward greener industrial development.

“Following President Prabowo Subianto’s direction, our priorities also include green energy, particularly the transformation toward a solar-based industry, with a targeted capacity of around 100 gigawatts (GW) within two to three years,” the minister said on Thursday.

Earlier, President Prabowo set a target of expanding solar power generation capacity to 100 GW as part of efforts to reduce reliance on fossil fuels and achieve 100-percent renewable electricity generation within the next decade.

The development of solar power plants (PLTS) has been included in the Electricity Supply Business Plan (RUPTL) of state-owned electricity company PT PLN through 2034, with a target capacity of 17.1 GW.

“In my opinion, this year’s priority is the de-dieselization program, or replacing diesel power plants, which involves converting electricity generation systems on small islands from diesel to solar power,” Hartarto said.

To achieve this target, he said Indonesia needs cooperation from relevant stakeholders, including strategic partnerships with friendly countries such as Germany.

“This means we will need technology and capital goods. This opportunity is open to German participation, considering that this transformation was only announced by the President some time ago,” the minister said.

Furthermore, he said Germany is also a strategic partner in the Just Energy Transition Partnership (JETP).

According to Hartarto, Indonesia has received a commitment of US$21.4 billion in international funding under the JETP to support the clean energy transition and decarbonization.

“Indonesia has allocated around US$21 billion, but progress has been rather slow. So far, only around US$4 billion has been utilized. We must move faster,” he emphasized.

Meanwhile, German Minister for Economic Cooperation and Development Reem Alabali Radovan said the cooperation was aligned with both countries’ commitment to achieving the Sustainable Development Goals (SDGs) by 2030.

She identified renewable energy as an area with strong potential for collaboration, noting that German companies could contribute their experience and technology.

“We also have various projects involving collaboration among academia, the public sector, and the private sector. For me, this is the right step toward jointly developing more sustainable solutions for the future,” she said.

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