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Govt vows to push local solar power to cut energy subsidies

The initiative, which could cost around $100 billion, would involve building solar farms of 1 to 1.5 hectares in each village across the archipelago.

Ruth Dea Juwita and Deni Ghifari (The Jakarta Post)
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Fri, July 25, 2025 Published on Jul. 25, 2025 Published on 2025-07-25T12:40:12+07:00

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A maintenance worker cleans solar panels on May 14, 2022 on the rooftop of a frozen food factory in Bogor, West Java. A maintenance worker cleans solar panels on May 14, 2022 on the rooftop of a frozen food factory in Bogor, West Java. (Antara/Arif Firmansyah)

T

he government plans to accelerate the adoption of solar power at the local level through more than 80,000 newly launched village-level cooperatives to generate clean energy and cut long-term reliance on electric subsidies.

The initiative, which could cost around US$100 billion, would involve building solar farms of 1 to 1.5 hectares in villages of every subdistrict across the archipelago.

“We're looking into the President's directive. […] The goal is energy independence,” said Coordinating Food Minister Zulkifli Hasan on Thursday, as quoted by Kompas.com.

The minister, who also leads the task force behind the cooperatives initiative, said the project’s $100 billion cost was roughly equal to four years of the country’s electricity subsidies, noting that they cost the state about $25 billion annually.

“If it’s $100 billion, that’s just four years. So, by the fifth or sixth year, this investment pays for itself […] we will not need subsidies anymore,” he noted.

Read also: Prabowo rolls out state-backed co-ops to boost grassroots economy

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He added that localized solar generation could be more efficient than relying on state-owned electricity distributor PLN.

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