Indonesia's plan to build 100 GW of solar capacity within three years faces significant obstacles spanning industrial ecosystems, regulatory readiness and investment needs, analysts said, as reported by Bisnis Indonesia.

The country's installed solar power capacity stood at only around 1.5 GW as of mid-2026, underscoring the scale of work needed to meet President Prabowo Subianto's solar development targets.

Zidny Ilman, an administrator at the Indonesian Solar Energy Association, underscored that the main challenge to meet the ambitious goal is building a healthy solar industry ecosystem involving state utility PT PLN, investors, financiers, project developers, engineering and construction contractors and manufacturers. Regulatory certainty and alignment are prerequisites for all industry players to participate, he said.

Solar is one of the pillars for expanding renewable generation capacity in the 2025-2034 electricity supply business plan, according to Joko Purnomo, PLN's new and renewable energy control manager.

He noted that solar plants can be developed through rooftop, ground-mounted and floating schemes across residential, commercial, industrial and utility-scale segments, with private developers able to participate through the independent power producer model.

However, developing solar projects takes a long process from planning and development to construction and grid connection, meaning acceleration requires coordination and industrial synergy among stakeholders — a further drag on achieving the target, he concluded.

Beyond regulatory and industrial readiness, financing remains another hurdle. Large investment requirements mean solar projects must have financial viability or bankability to attract funding from banks and investors, including global green finance institutions.

Tiza Mafira, Indonesia director at the Climate Policy Initiative (CPI), said global green finance offers an opportunity to accelerate development, but investment depends on more than technical and regulatory readiness, with investors also needing market certainty and indications of public acceptance.

To strengthen the flow of investment into the solar sector, CPI launched a power sector financing dashboard to improve transparency of financing information for the electricity industry, according to Mafira. The platform maps financing conditions in Indonesia's power sector and can serve as a reference for monitoring capital flows and investment opportunities in the energy sector.