Jisman P. Hutajulu, an expert staff member of the ESDM Minister for strategic planning, explained that this efficiency is obtained by comparing the generation costs of solar power plants combined with battery energy storage systems (BESS) with gas and diesel power plants currently in use, especially in several regions.
"Once the 100-gigawatt solar power plant program is completed, it will replace the very wasteful diesel power plants, both in the eastern part and in Java and Bali, which are also quite significant," Jisman said at the HIPMI Power Development Forum 2026 here on Wednesday.
The government is targeting the development of solar power plants with a total capacity of 100 GW between 2026 and 2028 as part of the national energy transition strategy.
This target requires an investment of approximately US$71.3 billion, Jisman noted.
Furthermore, solar power plant development also has the potential to have a broad economic impact.
This project is estimated to absorb up to 2.8 million workers in the construction sector and 1.5 million to 3.1 million workers in the manufacturing sector.
Furthermore, the development of a 100 GW solar power plant also has the potential to reduce energy imports with a substitution value of US$14.4 billion to US$28.9 billion and contribute up to US$26.6 billion to GDP.
However, Jisman acknowledged that large-scale solar power plant development still faces challenges, particularly in terms of electricity transmission infrastructure.
The government estimates that the construction of a supergrid transmission network will require 48,000 kilometers to ensure optimal distribution of electricity from renewable energy sources.
According to him, supergrid development is key to supporting the energy transition, particularly in addressing the imbalance between renewable energy source locations and electricity demand centers.
He explained that electricity load centers are currently concentrated on Java Island, while renewable energy potential is widely distributed outside Java.
Based on the state-owned electricity company PLN’s Electricity Supply Business Plan (RUPTL) 2025-2034, the government targets an additional 69.5 GW of generating capacity.
Of this total, 42.6 GW, or 61 percent, will come from new and renewable energy sources, supported by 10.3 GW of energy storage systems.
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Translator: Shofi Ayudiana, Yashinta Difa
Editor: Rahmad Nasution
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