Prabowo Launches 100 GW Solar Program to Cut Subsidies

President Prabowo Subianto launched a national strategic program on August 25, 2026, to construct solar power plants with a total capacity of 100 gigawatts (GW) by 2029. The initiative began with the launch of 14 projects across Indonesia, including a 300MWp plant in Gilimanuk, Bali, which integrates a Battery Energy Storage System to eliminate fuel oil use in the region's electricity system.

The first phase involves a combined capacity of 5.3GW, with two plants already operational and six under construction. The government intends to reach 30GW by 2026 and decommission 13GW of diesel-powered plants to lower greenhouse gas emissions. Groundbreaking ceremonies were held in Banyuwangi, Pasuruan, and Gajah Mungkur, while tenders were opened for floating solar plants at Jatiluhur and Cirata.

Minister of Energy and Mineral Resources Bahlil Lahadalia stated the program requires an investment between US$62 billion and US$73 billion. The administration expects the shift to save Rp73.9 trillion in annual energy subsidies. While the government targets rapid deployment, the Institute for Essential Services Reform warned that limited domestic module production and the need for grid modernization make the three-year goal technically challenging.