Source: CNBCIndonesia.com | October 28, 2025

Deputy Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, explained that the downstreaming project will result in lower prices for new and renewable energy (EBT) electricity. This will occur if the EBT power plant is also built domestically.

Todotua explained that the downstreaming project can support the development of EBT power plant supply chain factories. For example, solar power plants (PLTS) and solar panel factories can be built domestically as a result of the downstreaming project.

“So, if we can build a solar cell factory here and support the factory in producing competitive solar cells and solar panels, it will impact the economic price,” Todotua said on the sidelines of the 100 Indonesian Economists Meeting at the Bank Mega Tower, Jakarta, Tuesday (October 28, 2025).

Meanwhile, the selling price of electricity generated from renewable energy (RE) is considered a major challenge in the domestic energy transition program. Domestic renewable energy sources are indeed diverse, but solar energy is considered to have significant potential.

“There are several relatively inexpensive green energy sources, such as hydropower and hydroelectric power plants. But these sources are limited. Another factor is our potential. We have 3,700 gigawatts of potential, besides hydropower, and solar energy is the largest,” he added.

Meanwhile, to develop domestic solar power plants (PLTS), the government is currently promoting a village solar power program with a total capacity of 100 GW. This is also considered to make the price of the electricity generated more economical. “Therefore, we must support this. The success of the shift to green energy or the utilization of green energy depends on our strategy for managing the selling price of the energy produced,” he concluded.