From Sunlight to System: Strengthening Indonesia’s Energy Future

From Sunlight to System_1

Jakarta, 21 May 2026 – Indonesia’s energy transition requires more than simply increasing renewable energy capacity. It calls for the development of a resilient, flexible, and integrated energy system capable of supporting long-term sustainability goals. This shared vision became the central focus of the discussion panel “From Sunlight to System: Strengthening Indonesia’s Energy Future”, organised by the GIZ Energy Programme Indonesia and ASEAN in collaboration with strategic government and institutional partners.  

The event brought together more than 50 representatives from the Government of Indonesia, PLN as the state-owned enterprise in electricity, sovereign wealth fund, and renewable energy experts to discuss the strategic role of solar energy in accelerating Indonesia’s transition towards a cleaner and more sustainable energy future.

The programme featured opening remarks from representatives of the Ministry of Energy and Mineral Resources (MEMR) and GIZ Indonesia-ASEAN, followed by a keynote presentation, panel discussion, and interactive dialogue session involving policymakers, industry representatives, and international experts.

Among the distinguished speakers and participants were Nono Suprayetno, Renewable Energy Programme Coordinator at the Directorate General of New Renewable Energy and Energy Conservation (DG NREEC), MEMR; Frank Stegmueller, representing the Energy Programme Director of GIZ Indonesia and ASEAN; Christoph Luerssen, Power System Transformation Lead at the GIZ Energy Programme; and Toby D. Couture, an international expert in renewable energy policy, economics, and financing. The panel discussion also involved representatives from DG NREEC, the Ministry of Finance, Danantara, and PLN, reflecting the importance of cross-sector collaboration in Indonesia’s energy transition journey. 



Advancing Indonesia’s Solar Energy Transition 

In the welcoming remarks delivered on behalf of the Director General of DG NREEC, it was emphasised that solar energy is no longer viewed solely as an alternative source of electricity. Rather, it has become one of the key pillars supporting Indonesia’s broader energy transformation agenda. 

Indonesia has established ambitious targets under its Net Zero Emission (NZE) 2060 Roadmap, including the expansion of renewable energy deployment, energy efficiency measures, electrification across sectors, and the gradual phase-down of coal-fired power plants. The roadmap also highlights the importance of emerging technologies such as hydrogen, ammonia, carbon capture and storage (CCS), and carbon capture, utilisation, and storage (CCUS). 

During the discussion, participants highlighted Indonesia’s substantial solar energy potential, estimated at approximately 3,294 GW technically. However, as of March 2026, only around 1.6 GW had been installed and utilised. This significant gap between potential and implementation illustrates both the scale of the challenge and the opportunity ahead. 

Solar energy is expected to play a crucial role in reducing greenhouse gas emissions, strengthening national energy security, expanding access to clean electricity, and improving industrial competitiveness. Participants also underlined the importance of establishing enabling frameworks through stronger regulations, technical standards, spatial planning, and improved utilisation of solar irradiation data and technical modelling. 

 

Strengthening Energy Systems and Infrastructure 

A central theme throughout the event was the importance of ensuring that renewable energy deployment is accompanied by stronger and more flexible electricity systems. 

According to Indonesia’s National Electricity General Plan (RUKN), the country’s electricity generation capacity is projected to reach approximately 443 GW by 2060, with around 42 per cent expected to come from variable renewable energy (VRE) sources supported by storage systems. Solar energy alone is projected to contribute approximately 100 GW, making it one of the largest components of Indonesia’s future energy mix. 

The discussion also referred to PLN’s Electricity Supply Business Plan (RUPTL) 2025–2034, which outlines plans to develop approximately 69.5 GW of additional power generation capacity. Around 61 per cent of this planned expansion will come from renewable energy, including approximately 17.1 GW of solar PV. 

To support higher renewable energy penetration, the RUPTL also includes approximately 10.3 GW of energy storage systems, consisting of battery storage and pumped storage hydropower. Participants emphasised that strengthening grid infrastructure, improving system flexibility, and expanding storage capacity will be essential to maintaining reliability and ensuring successful renewable energy integration. The discussion further highlighted the importance of long-term planning and coordinated investment to support the transformation of Indonesia’s electricity system, including the development of stronger interconnections and super grid concepts. 

 

Collaboration for a Sustainable Energy Future 

Representing GIZ Indonesia and ASEAN, Frank Stegmueller highlighted the longstanding energy cooperation between Indonesia and Germany, which has continued for more than 40 years and evolved significantly over time. 

He explained that the partnership initially focused on smaller-scale renewable energy and electrification initiatives in remote areas before gradually expanding towards broader system transformation and renewable energy integration efforts. Today, approximately ten bilateral energy projects are being implemented in cooperation with MEMR, Bappenas, the Ministry of Finance, and the Coordinating Ministry for Economic Affairs. 

The event also provided international perspectives through the keynote presentation delivered by Toby D. Couture, who shared insights from global renewable energy markets and policy experiences. Drawing on examples from countries such as India, he highlighted how supportive policies and investment frameworks have enabled utility-scale solar energy prices to become increasingly competitive. 

Throughout the panel discussion and interactive dialogue sessions, participants reaffirmed the importance of collaboration among government institutions, utilities, financial actors, development partners, and the private sector in accelerating Indonesia’s energy transition. As Indonesia continues its pathway towards Net Zero Emissions by 2060, initiatives such as “From Sunlight to System: Strengthening Indonesia’s Energy Future” demonstrate the growing commitment of stakeholders to building a cleaner, more resilient, and more sustainable energy future for the country. 

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Christoph Luerssen

Power System Transformation Lead, Energy Programme, GIZ Indonesia & ASEAN
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