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SOLAR PV PROJECT
The government’s initiative to expand nationwide generation capacity through the Fast Track and 35 GW Programs provides a strong growth trajectory for PLN, with 56.4 GW of new generating capacity targeted by 2028.
The government’s initiative to expand nationwide generation capacity through the Fast Track and 35 GW Programs provides a strong growth trajectory for PLN, with 56.4 GW of new generating capacity targeted by 2028.
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SOLAR PV PROJECT
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Conclusion
Given the lack of state budget and government subsidy on renewable energy, Indonesia mainly relies on private and public investments. Nonetheless, many investors are hesitant to fund renewable energy development due to greater risks as opposed to returns on investment. Moreover, inconsistent regulations still exist in the country. The country lags in the development of renewable energy. Indonesia has only tapped into about 2 percent of the combined potential of geothermal, Solar, Wind, Hydro, and Biomass energy sources, and only 12 percent of its electricity comes from renewables.
The government should pay more attention to renewables and sustainability by allocating a larger portion of the state budget and providing more stimulus for renewable energy development. Indonesia should also accelerate the development of regulations for renewable energy. The government has to be committed to prioritizing this agenda. Regulations and laws governing the price of electricity and renewable energy should be seen as an urgent matter. In addition, various funding alternatives such as issuing green bonds or supporting renewable energy start-ups should also be carried out. This will not only help Indonesia meet its RE mix targets but also help secure a sustainable economy. The government is also planning to halt the import of fossil fuel and LPG by 2030 and accelerating Solar PV Power projects. This is a positive sign for the development of other renewable sources of energy.
