Revised ESDM Ministerial Regulation May Dampen Rooftop Solar PV Adoption

Press Release by Action for Ecology and People Emancipation (AEER) Concerning the Revision of Minister of Energy and Mineral Resources Regulation Number 26 of 2021

Jakarta, February 12, 2024


President Joko Widodo’s endorsement of the revision to Minister of Energy and Mineral Resources Regulation No. 26 of 2021 pertaining to rooftop solar power plants (PLTS) marks a pivotal moment in the advancement of renewable energy in Indonesia. This revision eliminates the option to export electricity from rooftop solar power plants to the grid, a move taken to reduce the financial burden of PLN amidst the oversupply of electricity, with the oversupply in the Jakarta Bali grid amounting to 4 GW.


The elimination of the electricity export option from rooftop solar power plants raises concerns regarding the declining public interest in solar power as a renewable energy source. This could potentially impede Indonesia’s endeavors to achieve its ambitious target of utilizing 23% renewable energy by 2025, as well as its emission reduction target of 31.89% by 2030.


Fossil fuel-fired steam power plants (PLTU) presently constitute the primary source of electricity supply in Indonesia. Apart from contributing significantly to electricity supply, PLTU also generates substantial carbon emissions. Reducing PLTU operations will help reduce excess electricity supply and support emission reduction efforts.


AEER believes that by reducing reliance on power plants and increasing the use of solar PV, Indonesia can achieve a balance between energy needs and environmental responsibility. We underscore the substantial potential, particularly in major cities like Jakarta, where 20% of the affluent population could potentially install rooftop PV with a capacity of 1 KWp. If each of these individuals were to embrace rooftop PV installation, the total capacity generated in Jakarta would escalate to 311.3 MWp.


AEER urges the government to reconsider its policy concerning the export of electricity from rooftop PV. Meanwhile, this policy also must be balanced with a strategy that accelerates the early retirement of power plants to support Indonesia’s energy transition to peak emissions by 2030 and go net zero by 2050.

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