AESI Urges Regulatory Clarity For Indonesia’s 100 GW Village Solar Program

The Indonesian Solar Energy Association (AESI) has called for stronger and clearer regulations to support the government’s ambitious “100 GW Village Solar Program.” The large-scale initiative aims to install solar power systems across thousands of villages in Indonesia, helping reduce dependence on fossil fuels and expand access to clean energy in rural areas.

AESI has expressed its support for the government’s vision of decentralized renewable energy. However, the association stressed that clear, consistent, and supportive policies are necessary to attract investors and ensure the long-term success of the program. According to AESI, without regulatory certainty, developers and financial institutions may see village-level solar projects as high-risk investments.

One of the main concerns raised by the association is the need for a strong legal framework. This framework should clearly define technical standards, grid integration rules, and financial mechanisms. AESI highlighted the importance of transparent power purchase agreements and clarified how these projects will coordinate with Perusahaan Listrik Negara (PLN), the country’s national electricity utility. Unclear rules regarding pricing and grid access could delay project implementation and discourage private sector participation.

The 100 GW Village Solar Program is expected to bring major benefits to rural communities. By providing reliable and sustainable electricity, the initiative could improve living standards and support small businesses, agriculture, and local industries. AESI believes that with the right policies in place, the program can also create jobs and promote domestic manufacturing of solar components. The association has suggested that the government introduce incentives to encourage local production, which would help reduce costs and strengthen the national economy.

In addition, AESI pointed out that the current licensing process for renewable energy projects remains complex and time-consuming. Simplifying permits and approvals would help speed up the installation of solar systems, especially in remote areas. The association also recommended establishing a fair pricing structure that reflects the true value of solar energy and ensures benefits for both the government and private developers.

AESI concluded that while the program marks an important step toward energy independence and carbon neutrality, its success will depend on a stable and transparent regulatory environment.