This satirical accolade casts significant doubt on the seriousness of Indonesia’s energy transition commitments, promises made by President Prabowo Subianto to the international community at the Group of 20 Summit in Rio de Janeiro, Brazil, last year and during his state visit to Brazil in July of this year.

The President has asserted that Indonesia aims to achieve net-zero emissions by 2050, a decade earlier than previously pledged, and reach 100 percent renewable energy within the next 10 years. Central to this vision is the ambitious target of installing 100 gigawatts (GW) of solar energy. The plan involves deploying 80 GW through decentralized systems across 80,000 villages, with the remaining 20 GW generated by centralized solar power plants.

If executed well, this initiative represents a strategic opportunity to accelerate the energy transition, stimulate demand for domestic solar and battery manufacturing and create green jobs.

However, the logistics are daunting. Installing solar panels across 80,000 villages will require massive capital, estimated at US$100 billion. This presents a huge hurdle.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), Indonesia’s renewable investment remains dangerously low, reaching only Rp 24 trillion (US$1.5 billion) in 2023, despite the fact that it ranks among the world’s largest greenhouse gas emitters. Furthermore, the state budget is already strained by priority programs, such as the free nutritious meal program and rising debt obligations.

Without a concrete financing and governance plan, this solar initiative risks stalling, mirroring the struggles of the future capital city project in Nusantara. This is to say nothing of the billions of dollars from the state budget already poured into the capital relocation to East Kalimantan with mixed results. To prevent the solar program from suffering a similar fate, Indonesia must explore alternative financing to provide critical early-stage capital.