Indonesia’s government has moved to reassure the public that its ambitious plan to develop 100 gigawatts (GW) of solar power capacity will not lead to electricity oversupply, particularly in the densely populated Java-Bali power system, which has historically faced excess generation challenges. The Ministry of Energy and Mineral Resources (ESDM) said the large-scale rollout of solar energy will be carefully aligned with regional demand, supported by energy storage systems and inter-agency verification to ensure grid stability across the country.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the solar expansion programme is designed to be distributed nationwide rather than concentrated in a single region, reducing the risk of imbalances between supply and consumption. He stressed that planning is still in its early stages and remains subject to detailed data consolidation and verification before final implementation. According to him, the government is taking a cautious and structured approach to ensure that every addition of renewable capacity matches real demand growth across Indonesia’s diverse electricity systems.
“It [solar power] will be distributed across Indonesia according to needs. We are still compiling the final recap,” Yuliot told reporters at the Energy Ministry office on Saturday, May 30, 2026. He added that the programme is not a blanket installation of capacity but rather a phased development strategy intended to strengthen energy access while maintaining system reliability.
In the first phase of the 100 GW solar project, the government plans to build 17 GW of solar power capacity alongside 33 GW of battery energy storage systems (BESS). Officials say the inclusion of large-scale storage is critical to managing the intermittent nature of solar power, ensuring that electricity generated during daylight hours can be stored and used during peak demand periods or at night. The integration of batteries is also expected to improve grid flexibility and reduce strain on transmission networks, particularly in high-demand regions.
“The first acceleration phase focuses on 17 GW, and we will also develop around 33 GW of battery energy storage systems,” Yuliot said. He noted that storage infrastructure is an essential component of Indonesia’s long-term energy transition strategy, especially as the country increases its reliance on renewable sources.
One of the key concerns surrounding the solar expansion plan is land availability, particularly in Java, which is home to the largest share of Indonesia’s electricity consumption. Yuliot confirmed that approximately 24,000 hectares of land have been identified for potential solar development across the island. However, he emphasised that the land allocation is still subject to verification and coordination between multiple government bodies.
“We will verify the 24,000 hectares together with the Ministry of Agrarian Affairs and Spatial Planning, the Energy Ministry, and PLN in Java,” he said, referring to Indonesia’s state electricity company. The inter-ministerial coordination is expected to ensure that land use planning aligns with environmental regulations, infrastructure readiness, and long-term grid requirements.
Indonesia’s push for large-scale solar development comes against the backdrop of historical oversupply issues in the Java-Bali electricity system. The region has struggled with excess capacity in recent years, particularly following demand disruptions during the COVID-19 pandemic. The oversupply situation became more pronounced in 2024, when installed capacity significantly exceeded actual consumption, creating operational and financial pressures for the national utility.
At its peak in 2024, the Java-Bali grid was reported to have an oversupply of around 4 GW. This surplus prompted the Energy Ministry to delay several power plant commercial operation dates (CODs), a move intended to reduce financial obligations under take-or-pay contracts held by PLN. The adjustment was designed to balance system efficiency while avoiding unnecessary capacity expansion during a period of subdued demand growth.
However, officials now say the situation has improved. By 2025–2026, the oversupply condition in Java is considered to have officially ended, driven by a rebound in electricity demand following the pandemic as well as rapid industrial expansion. The rise of energy-intensive sectors, particularly digital infrastructure such as data centres, has contributed to a significant increase in baseline electricity consumption across the country’s most populous island.
In June 2025, ESDM’s Directorate General of New, Renewable Energy and Energy Conservation issued what it described as a “yellow light” warning for Java’s electricity system, indicating that the region had transitioned away from surplus conditions. Officials pointed to sustained industrial growth and structural changes in consumption patterns as key factors behind the shift, signalling that future planning must account for stronger and more stable demand growth.
The government’s 100 GW solar initiative was first announced by President Prabowo Subianto as part of Indonesia’s broader energy transition agenda. Speaking at the BIMP-EAGA summit in Cebu, Philippines, in May 2026, Prabowo highlighted solar energy as a cornerstone of the country’s strategy to accelerate renewable deployment and strengthen regional energy cooperation.
“Our energy transition is moving at full speed. We are building 100 GW of solar power. Together we will strengthen our energy infrastructure. BIMP-EAGA has enormous potential,” Prabowo said. His remarks underscored Indonesia’s ambition to position itself as a regional leader in renewable energy development while leveraging cross-border cooperation frameworks.
In a separate plenary session during the same summit, the president reiterated the urgency of transitioning toward cleaner energy systems, stressing that diversification is no longer optional but essential for long-term sustainability. He called for accelerated investment in renewable technologies and infrastructure to reduce dependence on fossil fuels and enhance energy resilience across Southeast Asia.
“Energy diversification is no longer a choice. It is essential. It is necessary. We must move faster. We must adopt alternative sources and prepare renewable energy systems,” he said.
As Indonesia moves forward with its 100 GW solar roadmap, policymakers face the dual challenge of scaling up renewable capacity while maintaining grid stability in historically sensitive regions such as Java-Bali. The success of the programme will depend not only on installation speed but also on effective storage integration, regulatory coordination, and sustained demand growth to absorb new supply.
