Indonesia

Solar Energy Solutions for Businesses in Indonesia

Indonesia’s growing economy and industrial expansion are driving strong demand for reliable, affordable power. TotalEnergies ENEOS provides solar energy solutions for businesses in Indonesia that reduce electricity costs, lower carbon emissions and improve energy security, without requiring upfront investment.

Indonesia’s Rising Energy Demand and Market Challenges

Indonesia’s energy demand has been rising quickly as manufacturing, urbanisation and infrastructure development accelerate across the archipelago. Many commercial and industrial users face frequent grid disturbances and occasional blackouts, which create operational risks for production lines, cold storage and logistics operations that depend on stable power.

At the same time, electricity for businesses is becoming more expensive. Commercial and industrial tariffs have been increasing by around 7% per year, putting sustained pressure on operating margins and long term competitiveness. With a generation mix that still relies heavily on coal, companies are also exposed to tightening environmental expectations from customers, investors and regulators.

on-site solar gives Indonesian businesses a practical way to respond to these challenges. By generating electricity from their own rooftops or available land, companies can offset a significant share of their daytime grid consumption, shield themselves from future tariff hikes and make visible progress on sustainability targets, all while turning underused space into a productive energy asset.

National Renewable Energy Targets and Regulatory Support

Indonesia has set clear renewable energy targets for the coming decades, aiming for renewables to contribute 23% of its primary energy mix by 2025 and 31% by 2050. Solar is expected to play a growing role in achieving these goals, alongside geothermal, hydro and other clean sources.

To support this transition, the government is gradually rebalancing energy subsidies, encouraging additional renewable capacity and integrating greenhouse gas reduction commitments into long term planning. Power development plans now include more space for solar projects, from utility scale plants to rooftop and behind the meter systems serving commercial and industrial users.

For businesses, this policy direction signals that solar will become an increasingly important part of Indonesia’s energy landscape. Partnering with an experienced provider such as TotalEnergies ENEOS allows companies to align with national targets, manage regulatory change proactively and secure access to cleaner power in a structured, cost effective way.

Commercial Solar Projects in Indonesia

TotalEnergies ENEOS has delivered multiple commercial and industrial solar projects across Indonesia, working with leading brands in FMCG, manufacturing and heavy industry.

Danone

Solar installations that support beverage and nutrition production-sites, showing how fast moving consumer goods companies can use on-site solar to power their brands with cleaner energy and strengthen ESG performance.

Greenfields

A rooftop solar project at a major dairy processing facility, reducing the carbon footprint and energy costs associated with producing and processing milk for domestic and regional markets.

Kimberly Clark Softex

Solar PV projects serving hygiene and tissue product manufacturing plants, showing how FMCG companies are using solar to power production with cleaner energy and strengthen ESG performance.

PT Bintang Indokarya Gemilang

A prominent footwear manufacturer in Indonesia with a rooftop solar system that generates approximately 3,740 MWh of solar energy annually.

PT Gunung Raja Paksi Tbk (GRP)

TotalEnergies ENEOS installed a rooftop solar system for PT Gunung Raja Paksi Tbk; a member of Gunung Steel Group and one of the largest private steelmakers in Indonesia. The project is set to produce 60 GWh of renewable energy annually. At the time of writing, this installation currently holds the record for being the largest solar installation in Indonesia.

These projects show how Indonesian businesses across sectors are already using on-site solar with TotalEnergies ENEOS to address rising tariffs, improve reliability and advance their sustainability agendas.

FAQ

Electricity tariffs for commercial users in Indonesia are rising quickly because of increasing generation and fuel costs, the need to upgrade and expand grid infrastructure and adjustments to long standing subsidy structures, so businesses are paying more each year for the same amount of power and are looking for ways to stabilise their energy spend.

Frequent blackouts and grid disturbances push businesses to look for more reliable power options, and on-site solar helps by providing an additional source of electricity during the day that reduces dependence on the grid and can be combined with other measures, such as backup systems or storage, to improve overall resilience.

Indonesia has set renewable energy targets of 23% in the national energy mix by 2025 and 31% by 2050, with solar expected to contribute a growing share of new capacity alongside geothermal, hydro and other renewables, in line with its greenhouse gas reduction commitments.

Government policy supports commercial and industrial solar adoption by including more renewables in long term power development plans, adjusting subsidies to favour cleaner sources, clarifying rules for grid connected rooftop and behind the meter systems and opening the door to more private sector participation in renewable projects.

A wide range of businesses in Indonesia are installing solar today, including FMCG producers, food and beverage companies, petrochemical and industrial manufacturers, logistics and warehousing operators, agribusinesses and commercial parks, all seeking to cut costs and improve sustainability performance.

The level of savings for commercial and industrial businesses in Indonesia depends on their existing tariff, consumption profile and available space, but many sites can offset a significant share of daytime grid usage and reduce their average cost per kWh over the life of the solar system.

Businesses do not always need to invest their own CAPEX, because commercial models such as Power Purchase Agreements allow TotalEnergies ENEOS to finance, build and operate the system while the customer pays only for the solar electricity produced at an agreed tariff.

Most commercial solar projects in Indonesia can move from detailed feasibility to installation and commissioning within a few months, depending on project size, permitting and grid connection timelines, as well as site readiness.

Important site conditions for a successful solar installation include structurally sound roofs or suitable ground space, good solar exposure with limited shading, practical access for construction and maintenance and an appropriate connection point to the local electrical network.

Partnering with TotalEnergies ENEOS helps reduce the risks of going solar because we bring international engineering standards, strong health and safety practices, proven experience with Indonesian projects and a fully managed service covering design, permitting, construction, monitoring and long term operations and maintenance.