Indonesia is accelerating plans to convert diesel-powered electricity generation to solar energy, following instructions from President Prabowo Subianto amid persistently high global oil prices. The policy direction signals a renewed focus on cost efficiency, emissions reduction and improved energy access, particularly in remote regions. Details of the government’s approach were outlined by senior ministers after meetings at the State Palace in Jakarta, according to reporting by ANTARA News.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the president had instructed ministries to move quickly from assessment to implementation, citing the fiscal pressure created by oil price volatility. The transition is expected to play a role in Indonesia’s wider efforts to modernise public infrastructure and support a sustainable future, alongside initiatives highlighted in discussions on smart technology and innovation.
“Due to high oil prices, the president has instructed us to immediately assess and implement the conversion of diesel power plants to solar power,” — Airlangga Hartarto, Coordinating Minister for Economic Affairs, Government of Indonesia
Hartarto added that Indonesia’s sovereign wealth fund, Danantara, has been tasked with addressing issues related to diesel-powered plants as part of the transition. Diesel generation remains widespread across the archipelago, particularly in isolated areas where fuel transport costs are high and supply chains are vulnerable.
Task force to accelerate energy transition
To coordinate the shift, President Prabowo has appointed Energy and Mineral Resources Minister Bahlil Lahadalia to lead a dedicated Energy Transition Acceleration Task Force. The body is intended to streamline decision-making and ensure alignment between energy policy, subsidy reform and electrification goals.
“The goal is to speed up the energy transition and reduce subsidies. Converting diesel plants to solar power will improve efficiency in electricity subsidies and support the adoption of electric motorcycles and cars,” — Bahlil Lahadalia, Minister of Energy and Mineral Resources, Government of Indonesia
Bahlil also confirmed that the government is advancing clean and renewable energy programmes, including a large-scale solar power initiative with planned capacity of up to 100 gigawatts. Parts of the programme are expected to support electricity provision for schools and villages, reinforcing broader public-sector service delivery.
Focus on remote and underserved regions
The Energy and Mineral Resources Ministry is promoting solar power development to accelerate electrification in remote and island communities, where diesel generators have traditionally been the primary source of power. Officials argue that replacing diesel with solar will lower operating costs over time while reducing environmental impacts.
The shift also aligns with Indonesia’s broader digital and economic development agenda, where reliable and affordable electricity underpins initiatives ranging from public administration reform to financial inclusion, as seen in efforts to strengthen digital payment systems and other digital public services.
