Indonesia’s Largest Solar Farm: Key Opportunities and Challenges

Indonesia has an ambitious target to reach 23% of renewables mix in the total energy production by 2025. To achieve this target, the Ministry of Energy and Mineral Resources stated that it will require an investment of approximately 37 billion USD. However, the recent trends indicate that in 2021 the investment target will be underestimated due to the COVID-19 crisis and lower interest in developing Renewable Energy (RE) projects in Indonesia. Development of the largest solar farm in Sumba has been voiced to accelerate RE mix target and attract investors to participate, but the main question still remains: why is it so difficult to develop and finance RE projects in Indonesia as of today?