Indonesia has taken a major step toward expanding its renewable energy capacity by securing around $1.4 billion in foreign direct investment for solar power infrastructure. The announcement was made by Investment Minister Rosan Roeslani, who emphasized that the funding will play an important role in accelerating the country’s transition to cleaner energy and reducing its dependence on fossil fuels.
A key component of this investment is the development of a large-scale manufacturing facility dedicated to producing solar power components. Once completed, the facility is expected to have an annual production capacity of about 50 gigawatts. This manufacturing hub will significantly support the government’s broader plan to expand solar energy across the country and strengthen domestic supply chains for renewable technologies.
Construction of the factory began in mid-2025, and officials expect the project to be completed by the end of 2026. The facility is seen as an important step toward Indonesia’s long-term goal of achieving 100 gigawatts of installed solar capacity across the archipelago. By developing local manufacturing capabilities, the government aims to reduce reliance on imported solar equipment while boosting the country’s renewable energy industry.
President Prabowo Subianto has also directed authorities to accelerate the development of the national solar program. The government is exploring innovative financing structures to support the initiative, including partnerships between domestic organizations and international private companies with advanced expertise in solar panel manufacturing and battery energy storage systems. These collaborations are expected to bring both financial resources and technological knowledge to the country’s growing renewable sector.
The rollout of the solar expansion plan will take place in several phases. In the initial stage, the government plans to develop around 13 gigawatts of solar capacity, focusing primarily on regions that already have reliable electricity distribution networks. By prioritizing these areas, authorities aim to ensure faster and more efficient implementation while laying the groundwork for broader nationwide deployment.
A major objective of the program is to expand electricity access in rural and remote communities. The broader 100-gigawatt roadmap includes plans to deploy approximately 320 gigawatt-hours of energy storage to maintain a stable power supply even when solar generation fluctuates. To strengthen community participation, the government intends to involve nearly 80,000 rural cooperatives in managing and supporting these projects.
The need for such initiatives remains urgent. According to Indonesia’s Ministry of Energy and Mineral Resources, more than 5,700 villages and about 1.2 million households in the country still do not have access to electricity. Solar energy is expected to play a crucial role in addressing this challenge and improving energy access in underserved areas.
Initial progress has already been observed through a pilot project in East Java managed by the sovereign wealth fund Danantara. The project is being closely monitored and could serve as a model for future solar deployments across Indonesia.
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