Indonesia Seeks Chinese Investment for 100 GW Solar Power Initiative

Indonesia is positioning itself as a key player in the renewable energy sector by inviting Chinese investors to participate in its ambitious solar power initiative, which aims to develop 100 gigawatts (GW) of solar energy capacity by 2029. This initiative is part of the country’s broader strategy to transition to cleaner energy sources and reduce carbon emissions.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, made the appeal during a bilateral meeting with Chinese Commerce Minister Wang Wentao in Shanghai. Hartarto highlighted the significance of Chinese investment in the development of floating solar power plants, such as the Cirata project, which showcases the potential for cooperation between Indonesia and China in supporting energy transition and clean energy development. He stated that Indonesia appreciates the involvement of Chinese investment in the development of the Cirata Floating Solar Power Plant, noting that the project demonstrates the vast potential for Indonesia-China cooperation in supporting energy transition and clean energy development.

As reported by Katadata, the Indonesian government has set a target of 100 GW of solar capacity to be achieved by 2029, a goal that President Prabowo Subianto has emphasized as crucial for the country’s energy transition. The Ministry of Energy and Mineral Resources (ESDM) is tasked with overseeing this ambitious project, which aims to bolster Indonesia's energy security and sustainability.

In addition to solar energy, Hartarto noted that China has been a significant trading partner for Indonesia, with trade values projected to reach $154.6 billion by 2025. The average growth rate during the period from 2021 to 2025 is expected to be around 7.24%. Furthermore, Chinese investments are anticipated to contribute nearly $8.1 billion, accounting for approximately 13% of total foreign investment in Indonesia, particularly in sectors such as processing industries, trade, energy, property, and transportation.

Hartarto also discussed the importance of following up on existing memoranda of understanding (MoUs) between Indonesia and China, which have an estimated investment value of around Rp37.1 trillion (approximately $2.4 billion). He emphasized the need to transform these agreements into concrete investment projects, encouraging the formation of joint ventures between Indonesian and Chinese businesses to expedite cooperation under the Two Countries Twin Parks (TCTP) framework.

Moreover, the Indonesian government is advocating for a more balanced trade relationship with China, aiming to expand market access for Indonesian products, enhance exports of value-added goods, and strengthen downstream industries. Hartarto expressed hope that Danantara Indonesia could play a strategic role in attracting quality investments and strengthening national production capacity.

As Indonesia prepares for the upcoming APEC 2026 summit in China, Hartarto reiterated the country's commitment to maintaining a conducive investment climate and ensuring policy certainty. He expressed optimism that the discussions would lead to the identification of priority projects to be announced during the leaders' meeting.