Indonesia’s sovereign investment agency, Danantara, has secured US$1.4 billion to back the government’s push for 50GW of new renewable energy capacity by 2035, with a focus on solar.
The investment will fund the construction of a solar panel manufacturing plant, which is expected to be completed by the end of 2026. PV Tech has contacted Danantara for further details on the manufacturing project.
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The government has set a long-term target of 100GW of installed solar capacity by 2060, comprising 80GW of decentralised solar and 20GW of centralised capacity.
The decentralised segment will focus on village-level mini-grids, deploying around 1MW solar systems paired with 4MWh battery energy storage systems (BESS) across approximately 80,000 villages to replace diesel-based power. If successful, the 1MW pilot solar project in Sumenep, East Java, could be replicated across other regions.
In parallel, large-scale solar projects will support grid and off-grid demand, alongside plans to deploy 320GWh of battery storage to manage intermittency and enable round-the-clock electricity supply. In the initial phase, the government will prioritise 13GW of capacity, targeting regions with existing electricity distribution networks.
Indonesian President Prabowo Subianto has tasked Danantara with developing financing structures and forging partnerships with private technology providers to accelerate solar deployment, with a focus on rural electrification.
Data from the Ministry of Energy and Mineral Resources (MEMR) shows that around 5,758 villages, covering approximately 1.2 million households, remain without electricity across the archipelago.
By the end of 2025, Indonesia’s cumulative solar capacity reached 1.49GW, while renewables accounted for 15.75% of the energy mix, up 1.1% year-on-year.
