Exploring the Indonesia solar tender for Renewable Energy
In a landmark move for Southeast Asia’s renewable energy sector, Indonesia has officially launched a major tender for 1,225 MW (1.2 GW) of solar power capacity. The initiative, spearheaded by the state-owned utility PLN, marks a significant step forward in the nation’s commitment to transitioning towards cleaner energy sources and achieving its ambitious climate goals.
This large-scale procurement, named the Mentari Nusantara I project, is designed to accelerate solar development across the archipelago, demonstrating a clear strategy to harness the country’s vast solar potential.
Project Details: A Nationwide Rollout
The 1.2 GW tender is not concentrated in a single location but is strategically distributed across several key regions of Indonesia. This approach aims to bolster energy security and grid stability nationwide. The capacity will be allocated as follows:
- Java: 600 MW
- Kalimantan: 340 MW
- Maluku & Papua: 120 MW
- West Nusa Tenggara: 80 MW
- Sulawesi: 50 MW
- Sumatra: 35 MW
The tender was officially launched on April 30, 2026, with a target for the projects to reach their Commercial Operation Date (COD) by 2029.
A New Blueprint: The ‘Giga One’ Model
A key feature of this tender is PLN’s innovative ‘Giga One’ procurement model. This bundled approach packages multiple project sites into a single tender to achieve significant economies of scale. By doing so, PLN aims to attract major international and domestic investors, reduce costs, and provide greater certainty for developers.
According to PLN’s Suroso Isnandar, this tender represents a “key initial driver” for Indonesia’s renewable energy journey. He described the ‘Giga One’ model as a “new blueprint” that will be replicated for future tenders in other renewable sectors, including hydropower, wind, and battery energy storage systems (BESS). This signals a more systematic and scalable strategy for Indonesia’s energy transition.
Driving Toward a 100 GW Solar Target
The Mentari Nusantara I project is a critical component of Indonesia’s long-term vision for solar energy. The country has set a formidable goal of installing 100 GW of solar capacity, comprising 80 GW from decentralized small-scale systems and 20 GW from centralized, utility-scale power plants.
This tender will dramatically increase the country’s current installed capacity, which surpassed the 1 GW mark last year to reach 1.49 GW. The strategic importance of this goal is further supported by a recent study from the Institute for Essential Services Reform and the Coordinating Ministry for Economic Affairs, which outlines potential pathways to achieving the 100 GW target.
As detailed by pv magazine and pv magazine Australia, this move aligns with a robust global investment climate for solar energy. The sector successfully raised $11.1 billion in the first quarter of 2026, indicating strong investor confidence. By launching this giga-scale tender, Indonesia is positioning itself to capture a significant share of this global capital and cement its role as a leader in the region’s clean energy transition.
