The ambition towards Indonesia’s development of NRE power plants has been led by PLN NP as the support for the Paris Agreement – which emissions need to be reduced by 45% by 2030 and reach net zero by 2060, which Ruly Firmansyah as the President Director of PLN NP said.

“As the GenCo with the broadest scope of power plant operations, PLN NP is committed to leading the development of NRE power plants. As well as, the current a vision to harness the potential of 6.3 GW in renewable energy, PLN NP is advancing through numerous groundbreaking projects to shape a sustainable future and reach NZE by 2060.”

PLN NP acting director of business development and commerce Dwi Hartono explained that his company also had more projects to offer beyond solar PV power plants. These include hydro power, geothermal and other renewables source of power, but as the country has abundant solar energy potential of 3,687 gigawatts (GW), solar PV projects would likely be most attractive to investors, including those from Japan.

“We have more projects outside solar energy, about which investors from Japan could make a request during the business matching session. But for now, we are preparing solar PV projects to showcase here,” Dwi told the Japan RE Invest Indonesia 2024 forum.

During the business matching session, PLN NP hosted several Japanese investors and financiers exploring possible partnerships with the company to invest in renewable energy projects in Indonesia.

The solar PV projects presented by PLN NP focused on those which have successfully completed feasibility studies, signaling their readiness for further development. Among these, five solar PV power plant projects are currently in the request for proposal (RFP) phase for partner selection.

PLN NP’s five solar PV projects are all located on Java Island, which has a combined capacity of 250 megawatts (MW). Three projects will be located in East Java and two other projects will be located in Central Java. Each of this plants is designed to deliver a designed capacity of 50 MW. 

The partner selection phase presents a strategic opportunity for Japanese investors, who are known for their sustained interest in renewable energy investment, including in solar PV projects. With feasibility studies completed, these projects reduce development risks, offering a streamlined entry point for investors. Additionally, the 50 MW scale aligns well with Japanese investors’ preference for mid-to-large-scale renewable energy ventures, balancing manageability and impact while contributing significantly to Indonesia’s solar energy infrastructure.

Indonesia’s renewable energy landscape provides a high-growth market for Japanese expertise and capital. While the country boasts the Cirata floating solar PV power plant with a peak generation capacity of 192 MW, the largest in Southeast Asia, most of its solar PV power plants have a peak capacity of under 20 MW. The addition of these new projects not only diversifies Indonesia’s energy mix, but also offers Japanese firms an opportunity to expand their regional footprint by leveraging advanced solar PV technology and financing mechanisms.

This collaboration also aligns with Indonesia’s broader renewable energy strategy, which includes regulatory incentives and an active push for clean energy adoption. The Indonesian government has set ambitious targets, as recently restated at the COP29, to achieve a 52 percent renewable energy mix in Indonesia’s total electricity generation capacity by 2030, making solar PV a critical component of the transition. For Japanese investors, participating in these projects provides a pathway to align with these goals while contributing to global climate action initiatives.

Furthermore, the partnership potential extends beyond financial investments. Japan’s expertise in solar technology, project execution and operational efficiency offers a strategic advantage in ensuring the long-term success of these initiatives. Collaborative ventures in these projects could pave the way for knowledge sharing, capacity building and future innovations in renewable energy.

By introducing these projects to Japanese investors, PLN NP aims to foster partnerships that capitalize on Japan's technological expertise and Indonesia’s untapped solar energy potential. This initiative reflects a shared commitment to advancing renewable energy while strengthening economic and geopolitical ties between Indonesia and Japan. With the RFP phase underway, the partnership opportunities are ripe for exploration, providing a mutually beneficial scenario for both parties and contributing significantly to the region’s sustainable energy future.

While PLN NP has highlighted the strategic opportunity for Japanese investors, the investment opportunities in these solar PV projects are also open to investors from other countries. PLN NP welcomes local and global investors who are interested in contributing to Indonesia's renewable energy sector. By participating in these projects, investors from around the world can leverage Indonesia's growing renewable energy market, benefit from regulatory incentives, and play a significant role in the country's transition to a sustainable energy future.

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