Indonesia Solar Report

As of the end of 2023, Indonesia’s total installed solar panel capacity was 573.8 megawatts (MW).⁵

• The Indonesian Ministry of Energy and Mineral Resources (ESDM) has established ambitious renewable energy targets, aiming to significantly expand the country’s solar power capacity.⁵
• By 2024, the ministry seeks to reach 770 MW of installed capacity, followed by a substantial increase to 3.6 GW by the end of 2025.
• Looking ahead to the next decade, the government plans to install 29.3 GW of solar capacity by 2030, and a remarkable 264.6 GW by 2050. This would represent a significant milestone, with solar power accounting for more than half of Indonesia’s total power-generation capacity by 2050, marking a major shift towards a cleaner and more sustainable energy mix.

Here are the average costs for some major sources:

• Natural Gas (LNG): ⁶
  • The average national cost of generating electricity from natural gas in Indonesia was 7.05 cents per kilowatt-hour (kWh).
  • However, the cost of generating electricity in areas that aren’t yet supplied with electricity was 19.25 cents per kWh.
• Solar PV:⁷ Indonesia had an average utility-scale solar photovoltaic price of $80-100/MWh in 2023.
• Coal:⁸ Cost to generate electricity from coal is approximately 0.045 USD per kilowatt-hour.

Distribution of electricity generation in Indonesia is given below:⁹

• Power outages are very common in Indonesia. Exact hours are not available but;¹⁰
• Electricity customers experienced 19 hours on average or nearly 13 blackout events during 2017.

Current Installations¹⁰

Exact number of installations is not available but following information is given:

• As of June 2023, Indonesia’s rooftop solar photovoltaic (PV) capacity reached 95 megawatts (MW), with an impressive 72% of this capacity coming from household installations.
• The province of Banten leads the way in solar panel adoption, boasting 2,997 users and a total capacity of 12.4 megawatts peak (MWp). Furthermore, a new floating solar facility was launched in November 2023, situated in the Cirata reservoir in West Java.
• This innovative facility comprises 13 solar arrays and has a capacity of 145 MW, sufficient to power approximately 50,000 homes.

Projected Installations

• While the exact number of installations is not available, plans for expansion are underway for the floating solar facility located in the Cirata reservoir in West Java.
• The facility, which currently has a capacity of 145 MW, is expected to be expanded to reach 500 MW, with potential for further growth to a total capacity of 1,000 MW. This significant expansion would substantially increase Indonesia’s solar energy output, demonstrating the country’s commitment to renewable energy and reducing its carbon footprint.

Installed Solar Farms¹¹

Approximately 20-30 operational solar farms (This number can vary based on the definition of a “solar farm” and the scale of each project).

Projected Solar Farms

Indonesia is planning 60 more floating PV installations across its islands and reservoirs.

Current Demand¹²

• As of 2021, Indonesia’s total off-grid solar installation capacity was 67.59 MW with a growth rate of 11.4% annually with an estimated current demand for off-grid solar panels in the range of 1-2 GW.

Projected Demand

• Indonesia’s off-grid solar segment is poised for significant growth, driven by the country’s unique geography and dispersed topography.
• With over 17,508 islands, approximately 40% of off-grid regions are located outside of Java and are unlikely to be connected to the national grid.
• This presents a vast opportunity for off-grid solar solutions, which are expected to see a surge in demand to 3-5 GW by 2030, potentially serving millions of households and small businesses across the country.
• Projections indicate that the off-grid solar market will experience a compound annual growth rate (CAGR) of 10-15% over the next few years, making it an exciting and rapidly expanding sector in Indonesia’s renewable energy landscape.

Current Demand¹³

On-Grid Solar Market

The installed on-grid solar capacity was approximately 153 MW by the end of 2021.

Projected Demand

• 2025: Around 5.5 GW of on-grid solar capacity.
• 2030: The government targets to achieve 23% of its energy mix from renewable sources, potentially 9-10 GW of on-grid solar capacity, depending on the pace of policy implementation and market adoption with an annual growth rate of 6.4% in 2022-2030 and 5.8% in 2022-2050.

Worker of solar industry earn as follow:¹⁴

• Typical annual salary: USD 5,550.49
• Lowest average salary: USD 2,774.39
• Highest average salary: USD 8,564.67

In 2023, the total population of Indonesia was estimated at around The current population of Indonesia is 279,788,890.¹⁵

Estimate for Factory Rent

Average Warehouse Rental Cost

Average cost per square meter: USD 4.86 per square meter¹⁶

Specific Examples in the Cikarang Industrial Estate:

Factory rental prices range per year:

• Lowest = USD 24,400 per year¹⁷
• Highest = USD 54,900 per year¹⁸

Industrial Electricity Rates

In 2022, the average electricity selling price for industries in Indonesia amounted to USD 0.06592 per kWh.¹⁹

Water Costs

• So, drinking water tariffs in Indonesia range from approximately USD 0.1557/m³ to USD 0.5026/m³.²⁰
• The average cost of tap water supply is about ($6.10) per month.²¹

Key Components of Administrative Costs

Salaries and Wages:

Worker of solar industry earn as follow:¹⁴

• Typical annual salary: USD 5,550.49
• Lowest average salary: USD 2,774.39
• Highest average salary: USD 8,564.67

Office Supplies and Equipment

Costs for office Stationary²²

• In 2022, the average stationery import price in Indonesia was $2,989 per ton, showing a decrease of 8.9% compared to the previous year.
• The most significant growth occurred in 2018, with a 20% increase

Rent for Office Space²³

If the administrative office is separate from the factory, rental costs for the office space;

• On average, you can expect to pay at least $299 per person per month for office space.
• Class A buildings, located in strategic areas like Jakarta, are prime office spaces. The price per square meter in such buildings is around $181.

²⁴

Electricity Generation

• Indonesia generates electricity primarily through thermal power, which involves burning fuels or nuclear reactions to create steam, and renewable energy sources, such as wind, water, and the sun.
• In 2022, Indonesia’s electricity generation capacity was approximately 81.2 gigawatts (GW), producing 275 terawatt-hours (TWh) of electricity.
• Hydropower is the largest source of clean electricity, contributing about 8% to the energy mix.

Transmission & Distribution

• Indonesia’s transmission infrastructure includes a national grid system that efficiently distributes electricity across the country.
• The grid operates predominantly at 230 kV and 500 kV levels, ensuring extensive coverage, including remote and rural areas.
• The grid is interconnected through multiple backbone systems, providing robustness and reliability.

Energy Access

• As of 2023, Indonesia has made significant strides in improving electricity access, with over 99% of the population having reliable access to electricity.

Energy Exports

• Indonesia’s energy exports include biofuels and electricity generated from renewable sources.
• The country is a notable exporter in the region, with key destinations including various countries in Southeast Asia and beyond.

Indonesia has implemented several regulations to promote and manage the deployment of solar panels. Here are some key regulations:²⁵

Ministry of Industry Regulation No. 28/2020 on the Implementation of Industrial Standards for Photovoltaic Solar Panels

• Quality Standards: Specifies technical requirements and standards that solar panels must meet to ensure safety, reliability, and efficiency.
• Certification: Requires certification from authorized bodies to verify compliance with national and international standards.

Minister of Energy and Mineral Resources Regulation No. 36/2016:

• Mandates a minimum percentage of local content in solar panel production to promote domestic manufacturing and reduce dependency on imports.
• Implementation: Guidelines on how manufacturers can meet these local content requirements, such as sourcing components and materials locally.

Indonesia has taken several initiatives to promote the production of solar panels and adoption. Here are some key efforts:²⁶²⁷

Sustainable Energy Fund (SEF) Grant for Rooftop Solar Systems:

• The Indonesian Ministry of Energy and Mineral Resources (EMR) and the United Nations Development Program (UNDP) launched an incentive program for rooftop solar systems under the SEF grant.
• The SEF funds, managed by the Environmental Fund Management Agency (BPDLH), encourage people to install rooftop solar systems. This initiative targets customers of state electricity utility PLN, including households, businesses, small and medium enterprises (SMEs), and social facilities (schools, hospitals, houses of worship).
• The goal is to make investment in rooftop solar more attractive, contribute to renewable energy targets, and reduce greenhouse gas emissions.

Policy Changes for Rooftop Solar:

The government amended regulations related to rooftop solar. Changes include:

• Increasing the percentage of electricity export from rooftop solar systems to 100%

of the export volume recorded at the export-import meter.

• Shorter application time for rooftop solar.
• Formation of a rooftop solar customer service center.
• Carbon trading opportunities from rooftop solar.

Transition from Fossil Fuels:

• Indonesia aims to retire or retrofit coal plants and invest in renewable capacity.
• The country plans to build dispatch able renewable capacity (bioenergy, geothermal, hydropower) and variable renewable capacity (solar and wind).
• Strengthening the renewable energy supply chain, including solar PV manufacturing, is also essential.

Renewable Energy Tariffs and Incentives

• The government determines the annual subsidy amount based on the difference between the average cost of electricity production and the average electricity tariff.
• In 2020, the government allocated USD 97.42 million for energy subsidies.

Feed-in Tariff (FiT)

This policy, introduced in 2016, grants FiTs for 20 years in the range of USD 0.145-0.25/kWh, depending on the region.

Tax incentives

The government may grant investors corporate income tax cuts of up to 100% for 5-20 years, depending on their investment

²⁸

Installed Projects

Cirata Floating Solar Power Plant

• Capacity: 145 MW
• Location: Cirata Reservoir, West Java
• Details: This project is one of the largest floating solar power plants in the world. It utilizes the water surface of the Cirata Reservoir for solar panels, maximizing land use efficiency and generating clean energy.

Tangguh Solar Power Plant

• Capacity: 2 MW
• Location: West Papua
• Details: Developed by the Ministry of Energy and Mineral Resources, this project aims to provide renewable energy to remote areas of West Papua, enhancing energy access and reducing reliance on diesel generators.

Cikarang Listrindo Solar Power Plant

• Capacity: 10 MW
• Location: Cikarang, West Java
• Details: Integrated into the Cikarang Listrindo industrial estate, this solar power plant supplies renewable energy to industrial consumers, contributing to sustainability goals and reducing carbon emissions.

Future Projects

Quantum Power Riau Solar PV Park:

• Capacity: 3,500 MW
• Location: Riau, Indonesia
• Developer: ib vogt
• Status: Currently in the permitting stage, expected to enter commercial operation in 2032.

Duriangkang Floating Solar PV Park:

• Capacity: 2,200 MW
• Location: Riau Islands, Indonesia
• Developer: Sunseap Group
• Status: Currently in the permitting stage, expected to come online by 2026.

Citlim Solar PV Park:

• Capacity: 1,682 MW
• Location: Riau Islands, Indonesia
• Developer: Sunseap Group
• Status: Currently in the announced stage, with commercial operation expected in 2027.

Bantan Solar PV Park:

• Capacity: 1,500 MW
• Location: Riau, Indonesia
• Developer: CGN Energy International
• Status: Currently in the announced stage, commissioning expected by 2027.

Combol Solar PV Park:

• Capacity: 1,380 MW
• Developer: Sunseap Group
• Status: Currently in the announced stage, commissioning expected by 2027.

²⁹

Alva Energi

• Website: http://www.alvaenergi.com/
• Services: Solar consultancy services including grid impact study, green building, feasibility study, solar education, grid design, clean energy transformation, and rural electrification.
• Address: Citra 8 Blok L03 No. 23 Jakarta, Indonesia
• Contact No: +62 8129 0543 786

ATW Solar

• Website: http://atw-solar.id/
• Services: Engineering Procurement Construction (EPC) specializing in solar photovoltaic complete system integration and energy storage solutions. Also involved in solar equipment procurement and distribution, and solar leasing for companies.
• Address: Jl. Mandar VI Block DC4-12, Tangerang Selatan, Banten 15225, Indonesia
• Contact No: +62 21 2765 8985

Inecosolar

• Website: https://inecosolar.com/
• Services: Turn-key solar solutions for residential and commercial sectors, applying Australian standards. Specializes in rooftop solar installations and offers financing options.
• Address: Jalan Raya Canggu No 668, BR Dinas Tandeg, Desa Tibubeneng, Kuta Utara, Bali 80361
• Contact No: +62 813 3988 3103

SEDAYU

• Website: https://sedayu.com/
• Services: Solar energy solutions for residential, commercial, and industrial sectors. Offers rooftop solar installations and partnerships with banks for financing options.
• Address: Jalan Raya Kebayoran Lama No.156, Jakarta Barat 11560, Indonesia
• Contact No: +62 21 532 1490

Smart Energy Technology

• Website: https://www.smartenergy.tech/
• Services: Provides integrated renewable energy solutions including solar, batteries, cooling, air quality, and hot water systems for residential and commercial sectors.
• Address: Jl Bypass Ngurah Rai No 178, Sanur, Bali, Indonesia
• Contact No: +62 812 3742 6724