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Why Indonesia is a must-do market for solar energy business now?


  • Indonesia with over 250 million of population has recognized as one of the most important dynamic market and resource-rich country.

  • Indonesia is the fastest growing economy in G-20 after China.

  • Indonesia is located on the equator, at latitude 6° LU -11° LS 95° BT – 141° BT, with the sun rotation in a year which is in the region 23,50 LU and 23,50 LS, hence the Indonesian region will always exposed by the sun for 10-12 hours a day.

  • Due to the location of Indonesia is on the equator; therefore the level of solar radiation in Indonesia is very high. Based on data of solar radiation which is collected from 18 locations in Indonesia, solar radiation in Indonesia can be classified as follows: in the Western of Indonesia is about 4,5 kWh/m2/day with monthly variation around 10%, and in the Eastern of Indonesia is about 5.1 kWh/m2/day with monthly variation around 9%. Thus, the average of potential wind in Indonesia is about 4.8 kWh/m2/day with monthly variation around 9%.

  • Indonesia has abundant renewable energy including geothermal nearly 30,000 megawatts (MW) and 75,000 MW of hydro energy, also from other green energy such as wind, biomass, solar total potential of 50,000 MW.

  • Solar energy is one of the energy that is being actively developed today by the Indonesian Government as an alternative energy source.

  • In order to attract more private investors in the development of solar energy, the government will set a feed-in tariff for electricity produced by solar power plants (2013).

  • The Indonesian Ministry of Energy has issued a tender for the construction of solar installations at 80 locations in Indonesia , most of them located in the eastern part of the country. The solar energy will be bought by PLN for a maximum rate of $0.25 cents per kilowatt hour (according to the Indonesian media).

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