Indonesia Secures $1.4 Billion For 50 GW Solar Manufacturing
Danantara Indonesia has secured $1.4 billion in investment to build a solar PV manufacturing facility with up to 50 GW annual capacity
The factory is expected to be completed by the end of 2026 and will supply equipment for solar power plants across the country
President Prabowo Subianto has also formed a task force under Energy Minister Bahlil Lahadalia to accelerate the energy transition, including replacing diesel power plants with solar systems
Danantara Indonesia, the country’s sovereign wealth fund, has secured $1.4 billion in investment to build a solar PV manufacturing facility with an annual capacity of up to 50 GW. The factory will supply equipment for solar power plants (PLTS) across Indonesia.
Speaking to the media on March 5, 2026, Indonesia’s Minister of Investment and Downstream Development and Danantara CEO Rosan Roeslani reportedly said the facility will help support the government’s solar deployment plans, including projects aimed at expanding electricity access in villages. The manufacturing plant is expected to be completed by the end of 2026.
“The factory accounts for 50 gigawatts. We have also received investments, and it will be completed by the end of the year. It will help us use our local products for the solar farm project,” said Roeslani.
TaiyangNews reached out to Danantara Indonesia for details on the 50 GW manufacturing plans, but is awaiting a response as of the time of publishing this story.
The country targets installing 100 GW of total solar PV capacity, of which will be centralized (20 GW) and decentralized (80 GW) capacity, along with 320 GWh of battery energy storage systems (BESS). This will require up to $78 billion over the next 5 years, according to an IESR report (see Indonesia Needs $78 Billion Until 2030 For 100 GW Solar Push).
According to Bloomberg Technoz, Danantara has installed a 1 MW solar power plant prototype in Sumenep, East Java. The remaining capacity will be rolled out in collaboration with the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Education and Technology, based on a detailed review of the 1 MW project.
Indonesian President Prabowo Subianto has reportedly formed a task force under Energy and Mineral Resources Minister Bahlil Lahadalia to accelerate the energy transition to achieve the 100 GW solar goal, starting with an initial 13 GW. It entails accelerating the conversion of diesel-powered power plants (PLTD) to PLTS.
This will also reduce electricity subsidies while accelerating electric mobility, according to Lahadalia.
At the end of 2024, Indonesia’s total installed solar PV capacity stood at 942 MW, according to the International Renewable Energy Agency (IRENA).
