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Indonesia Solar, Hydrogen, and Energy Transition Update

Updated 7 times since CLSTR started tracking revisions of this situation.

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2026-09-03 07:46 UTC → 2026-09-08 13:59 UTC · added ~~removed~~

By September 2026, Indonesia’s energy transition has expanded to include new research into natural hydrogen and strategic land management for solar projects. To meet the 100 GWp solar target, Pertamina New & Renewable Energy (NRE) is addressing land scarcity by evaluating its own operational land, exploring partnerships, and prioritizing floating and rooftop solar to avoid competition with the plantation and property sectors. Simultaneously, the National Energy Council (DEN) has shifted focus toward the potential of natural hydrogen. In collaboration with scientific institutions like BRIN and academia, the government is conducting geological mapping and research to understand the formation and exploitation of this resource. Industrial demand for solar power plants (PLTS) is rising as companies seek to improve cost efficiency and energy security. Emmanuel Jefferson, CEO of SUN Energy, stated that solar energy can reduce operational costs by up to 30 percent. The mining sector, in particular, is increasingly looking toward solar power combined with Battery Energy Storage Systems (BESS) to mitigate the impact of rising diesel prices and geopolitical dynamics. Technological advancements have made solar energy costs competitive with PLN electricity tariffs for sectors including manufacturing, automotive, and fast-moving consumer goods (FMCG). Regarding the solar rollout, the initiative is estimated to require US$73 billion and aims to electrify 100 mid-sized cities by 2029. Experts from the Institute for Energy Economics and Financial Analysis (IEEFA) recommend integrating these targets into the 10-year Electricity Supply Business Plan (RUPTL) to better coordinate investments in generation, transmission, and storage. To facilitate construction, Indonesia is seeking cooperation from China, which analysts suggest may be best utilized as an engineering, procurement, and construction (EPC) contractor. This follows the model used for the Cirata floating solar plant, where China’s PowerChina served as the EPC contractor for a joint venture between PLN Nusantara Power and the UAE’s Masdar. In the broader energy services sector, PT Elnusa Tbk is diversifying its business beyond the Pertamina ecosystem, leveraging seismic and geoscience expertise to serve external clients, who contributed approximately 22% of its revenue in the first half of 2026.

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