A Lesson of Solar Energy Development in Malaysia and Indonesia

Abstract

To address environmental issues, Indonesia aims to achieve a 23% renewable energy share by 2025 and 31% by 2050. According to National Energy Plan (RUEN), the target for solar energy installed capacity is 6.5 GW by 2025 and 45 GW by 2050. Looking at one of Indonesia neighboring country, Malaysia, have a significant growth on solar energy as a result from their policy framework, role of national electricity company, and the PV industry condition. Therefore, this paper will be projecting Indonesia’s progress on solar energy target in RUEN using Malaysia’s approach and Tenaga Nasional Berhad (TNB) initiatives and using Business as Usual (BAU) scheme, in which the result shows that achievement on RUEN target still below 22% for both schemes.