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Indonesia's 100GW Solar Push: Lessons for Global Energy Transition

Financial Times Companies •
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Indonesia, the world's third-largest coal producer and top nickel source, is central to the global energy transition puzzle. President Prabowo Subianto launched an ambitious plan to install 100 gigawatts of solar power in three years—67 times the previous capacity—showcasing remarkable scale. While his administration has backtracked on controversial policies, it remains committed to green power expansion.

The shift is economically driven: solar costs have fallen 90% since 2010, making it cheaper than coal's 10-15 cents per kilowatt-hour in Indonesia. Battery price drops enable 24-hour clean power for remote islands currently using expensive diesel. Southeast Asia saw 59% solar investment growth in H1 2026 to $7.3bn.

However, Indonesia reveals challenges in translating bold pledges into action—only 14 projects announced with just 2 operational and 6 under construction, highlighting the gap between vision and implementation.