Achieving Low Solar Energy Price in Indonesia: Lessons learned from the Gulf Cooperation Council region and India

This report analyzes the factors contributing to the slow growth of solar energy in Indonesia compared to the rapid expansion in India and the Gulf Cooperation Council (GCC) region, suggesting that Indonesia can lower energy prices by adopting supportive policies, streamlining decision-making, and rethinking local content requirements.

• Indonesia has lagged in solar energy growth despite having aggressive policy targets, whereas India and the Gulf Cooperation Council (GCC) region have experienced significant expansion. The primary differences driving this gap include land acquisition policies, policy enabling conditions, a more stable investment environment, and lower perceived investment risks in the GCC and India.
• The UAE, Saudi Arabia, and India have utilized specific national roadmaps and intra-governmental restructuring to create streamlined decision-making and supportive atmospheres for renewable energy. Examples include the UAE's Energy Strategy 2050 and Saudi Arabia's National Renewable Energy Program under Vision 2030.
• Low risk and high bankability in the GCC region are linked to the use of long-term Power Purchase Agreements (PPAs) for large-scale projects. In India, low risk is attributed to the successful track record of numerous large-scale projects, which has increased stakeholder understanding of project mechanics.
• The report suggests Indonesia should reconsider its local content policy, noting that India has relied on imported panels and has not seen promising results from safeguard duties or local content requirements. Additionally, adopting de-risking strategies like India's Solar Park policy could mitigate costs and risks associated with land acquisition in Indonesia.

APA

Suharsono,, A. (2020). Achieving Low Solar Energy Price in Indonesia: Lessons learned from the Gulf Cooperation Council region and India. International Institute for Sustainable Development. https://www.iisd.org/publications/solar-energy-price-indonesia

Chicago

Suharsono,, Anissa. Achieving Low Solar Energy Price in Indonesia: Lessons learned from the Gulf Cooperation Council region and India. International Institute for Sustainable Development, 2020. https://www.iisd.org/publications/solar-energy-price-indonesia.

Wikipedia

{{cite report |last1=Suharsono, |first1=Anissa |title=Achieving Low Solar Energy Price in Indonesia: Lessons learned from the Gulf Cooperation Council region and India |publisher=International Institute for Sustainable Development |date=20 March 2020 |url=https://www.iisd.org/publications/solar-energy-price-indonesia |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{suharsono2020achieving, author = {Suharsono,, Anissa}, title = {{Achieving Low Solar Energy Price in Indonesia: Lessons learned from the Gulf Cooperation Council region and India}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = mar, url = {https://www.iisd.org/publications/solar-energy-price-indonesia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }