The Indonesian Solar Energy Association (AESI) has urged the government to establish a clear legal framework for the planned 100 gigawatt (GW) solar power programme. The industry body warned that regulatory certainty will be critical to ensure consistent implementation and attract long-term financing.
The appeal follows the government’s proposal to roll out a village-based solar initiative targeting up to 100 GW of installed capacity nationwide as part of Indonesia’s broader energy transition strategy.
Dedicated Regulation to Accelerate Implementation
Rama Dinara, Head of AESI 100 GW Task Force, emphasised the need for a specific regulation that goes beyond existing business-as-usual mechanisms. He said the programme requires an accelerated policy approach to meet its ambitious targets.
“We agree that a legal umbrella is needed for this program. There must be a regulation that is not business as usual, but one that accelerates all existing initiatives,” Rama said during a stakeholder discussion.
AESI believes that without a dedicated regulatory structure, the solar programme may face delays similar to previous renewable energy initiatives.
Tariff Certainty and Offtake Clarity Key to Investor Confidence
According to AESI, the proposed framework must ensure tariff certainty and clearly defined electricity offtake arrangements. These elements are essential to strengthen investor confidence, particularly among banks and financial institutions.
The association cautioned that without predictable revenue streams and standardised contract structures, large-scale solar projects could encounter significant bankability challenges.
The call for regulatory clarity has been echoed by PT Sarana Multi Infrastruktur (SMI), a state-owned infrastructure financing company.
Nadia Sancayawati, Team Leader at SMI’s Financing Division, noted that bankability remains the primary hurdle in renewable energy financing. She stressed that revenue certainty is the foundation for securing project funding.
“The main issue in financing is bankability, and bankability rests on revenue certainty,” she said.
With a 100 GW target, regulatory clarity is expected to play a decisive role in mobilising private capital and scaling up village-based solar infrastructure across the country.
