Hope and Challenges Toward a 100 GW Solar Target

By: Ir. Widi Pancono (Chairman of Kopetindo)

JAKARTA, JOURNALARTA.COM – As part of Indonesia’s push to achieve Net Zero Emission (NZE) by 2060 and reduce dependence on fossil fuels, the government has set an ambitious target: building 100 gigawatts (GW) of solar power capacity by 2030. The plan places solar energy at the center of the national clean-energy mix.

The goal has been welcomed by industry players, investors, and environmental observers. But behind the optimism lies a long list of technical, economic, and regulatory hurdles that must be cleared if the target is to move from statement to reality.

Big expectations behind the 100 GW target

Indonesia has a rare geographic advantage. Sitting on the equator, the country receives abundant sunlight year-round, with average radiation levels reaching 4.8-5.5 kWh/m² per day. That potential remains underused, even though it far exceeds current national electricity needs.

Several strategic benefits are expected to follow:

1. Faster decarbonization: Solar power, as a clean energy source, can cut carbon emissions significantly and help Indonesia meet its global climate commitments.

2. Lower fuel imports: Dependence on oil and coal can be reduced, saving foreign exchange and helping stabilize energy prices.

3. Broader electricity access: Small-scale and distributed solar systems are well suited for remote areas and islands that are hard to reach through the main grid.

4. Growth for the green economy: A target this large requires trillions of rupiah in investment, opening new jobs, developing supporting industries, and attracting sustainable foreign capital.

5. Lower long-term costs: Upfront costs are high, but solar operations are cheap because the source is free and renewable.

Real challenges on the road to 100 GW

Even with strong potential, reaching 100 GW will not be easy. The main challenges are clear:

1. Limited power grid infrastructure

This is the biggest hurdle. Solar energy is intermittent: it is unavailable at night and drops when clouds roll in. Indonesia’s current grid was not designed to absorb such large fluctuations. And because many of the best solar sites are far from major load centers, major new transmission lines will be needed.

2. Need for energy storage

To keep supply stable, large-scale storage systems are required. Battery technology remains relatively expensive and depends on secure raw-material supply chains. Without efficient storage, excess daytime solar power risks going unused.

3. Regulation and business permits

Land and investment licensing in Indonesia is still seen as lengthy and bureaucratic. Many local and foreign investors are waiting for legal certainty on land ownership, electricity purchase prices, and government incentives. Clear rules are essential to attract major funding.

A coordinated effort is also needed among the Energy and Mineral Resources Ministry, the Cooperatives Ministry, Bappenas, the Finance Ministry, the Agrarian and Spatial Planning Ministry, and the Coordinating Ministry for Economic Affairs to simplify licensing and speed up delivery of the target.

In this process, the Indonesian Renewable Energy Cooperative (Kopetindo) is expected to play a role as an implementer of village-based solar power projects.

4. Industrial readiness and human resources

Most core solar panel components are still imported. To cut costs and create added value, Indonesia needs to build a domestic manufacturing ecosystem for solar panels and related equipment. At the same time, the country must quickly produce more technicians who understand solar installation and maintenance.

5. Environmental and social concerns

Large-scale solar projects require wide land areas. That raises concerns over the conversion of farmland, forests, or possible conflicts with indigenous communities. Careful spatial planning and community involvement are key so development does not harm the environment or local livelihoods.

Strategic steps toward success

To bridge the gap between hope and challenge, concrete and structured steps are needed:

– Regulatory simplification: Speed up permitting, provide certainty on PLN’s electricity purchase prices, and create attractive incentive schemes for investors.

– Infrastructure development: Strengthen transmission networks and support research and adoption of affordable energy storage technologies.

– Industrial localization: Encourage investment in domestic solar panel factories so the economic value stays within the country.

– Human resource development: Expand training and education programs so local workers can master the technology.

– Integrated approach: Combine solar power with other energy sources and expand rooftop solar in offices, homes, and industrial sites to reduce pressure on the main grid.