Indonesia will build 30 gigawatts (GW) of solar power capacity and phase out 13 GW of diesel-fired power plants in 2026 as part of efforts to strengthen national energy self-reliance, President Prabowo Subianto said.

Speaking in Jakarta while presenting the 2027 Draft State Budget and Financial Note, Prabowo said Indonesia’s year-round sunlight provides significant potential for solar power, particularly in remote areas.

"It does not make sense for our remote islands to keep waiting for ships carrying diesel fuel for electricity. The economic cost is far too inefficient," he said.

The government plans to gradually expand solar power capacity to 100 GW, which could reduce electricity generation costs by up to Rp73.9 trillion ($4.5 billion) annually, according to calculations by the Coordinating Ministry for Economic Affairs.

The shift to solar is also expected to reduce fuel imports and conserve foreign exchange, while improving electricity access in remote communities.

Prabowo said the government would also encourage every village to develop a 1-megawatt (MW) solar power plant, subject to land availability.

"Ideally, every village could have a 1-megawatt solar power plant. If a village is willing to prepare the land, we can make it happen," he said.

The planned expansion forms part of Indonesia’s broader push to increase renewable energy use and reduce reliance on diesel and imported fuels. -OGN/TradeArabia News Service