Indonesia is accelerating its renewable energy ambitions with a plan to develop 100 gigawatts (GW) of solar power capacity within three years, reflecting its commitment to expanding cleaner energy sources and reducing reliance on fossil fuels.
According to the Financial Times, declining solar technology costs and advances in battery storage are strengthening the economic case for renewable energy development. Solar power generation in Indonesia is now estimated to be more cost-competitive than coal, creating potential opportunities for international investors in solar infrastructure, energy storage and supporting technologies.
However, translating these ambitions into operational projects will require substantial financing and clearer implementation frameworks. The proposed solar programme is estimated to cost US$73 billion, highlighting the need for international investment, stronger regulatory certainty and collaboration between public and private stakeholders.
Indonesia’s energy transition therefore presents significant long-term investment potential, while underscoring the importance of securing financing and ensuring effective project delivery.
Copyright The Financial Times Limited 2026. All rights reserved.
Edited by: Simon Mundy
Link to the article: https://www.ft.com/content/3cd95c0c-4d62-4a74-8c66-34523bc2567d?syn-25a6b1a6=1
