Indonesia Launches 1.225 GW Solar Tender Across Multiple Regions, PLN Keeps Deadline Undisclosed

JAKARTA – In a significant step toward diversifying its energy mix and meeting ambitious renewable energy targets, Indonesia's state-owned electricity company, PT PLN (Persero), has officially launched a large-scale tender for solar power projects totaling 1,225 megawatts (1.225 GW). The massive procurement, which will see photovoltaic (PV) facilities spread across multiple islands in the archipelago, underscores the government's renewed commitment to transitioning away from fossil fuels.

The utility has not yet made a public announcement on the bid deadline, in an unusual move that observers say is raising a lot of questions among potential investors and developers who are looking for clarification on the matter. PLN posted an announcement on their procurement website this past week; however, specific dates for submission are not listed in their original documentation.

PLN has issued a new tender for 1.225 GW, making this one of the largest solar procurements ever issued in South-East Asia. The tender includes an array of different sized utility-scale PV solar-generation facilities (solar farms) to be located at different locations throughout Indonesia's various provinces and islands. The utility has not yet published how it will divide the capacities of the plants by region; however, based on analyst conversations, we understand that the majority of projects will be allocated to Sumatra, Java, Kalimantan and possibly Sulawesi. Developing the projects in various locations will minimize transmission losses and improve the reliability of local transmission systems where they have commonly relied on diesel power.

It appears likely that development will take place under PLN's independent power producer (IPP) program. In this framework, private companies will provide financing for the development and construction of the plants, take ownership of the plants after construction is complete, and then operate the plants to provide electricity to PLN under long-term power purchase contracts (PPA). It is reported that the PPA agreement package includes standard technical specifications, land requirements for construction, and commercial agreement terms; however, much of the detail of the PPA agreements-specifically the tariff caps and terms of contract-need to be examined further by industry participants.

One of the most interesting things about PLN's tender process may be the absence of a public deadline for when bids will be accepted. In other Indonesian tender processes, there is an established timeline for each stage of the process (registration, bid closure, etc.), which allows for fair competition between bidders and transparency throughout. By not making this information accessible for the PLN tender, it appears that PLN may be using a two–step selection process, in which pre–qualified bidders will go through a selection for shortlisting before a formal timeline is provided. Another possible explanation would be that PLN has not yet received final approval from the Ministry of Energy and Mineral Resources (MEMR) for how they will be handling their pricing mechanisms and local content requirements.

According to an anonymous spokesperson from the renewable energy procurement office at PLN, the tender is still in its initial announcement. "At this point in time, we have only published an announcement for qualified developers to submit their expressions of interest. The more complete timeline will be published via subsequent addendums," he said. This lack of detail has brought about mixed reactions among developers; some are appreciative to have more time for their proposals, while others are concerned about the length of time it may take and the possibility of greater fluidity in the tender.

Initial reactions from the solar industry have been cautiously optimistic. Major regional developers, including those from China, Singapore, and the Middle East, have expressed interest, though they stress the need for clear timelines and bankable PPAs. "A 1.225 GW tender is a huge vote of confidence in Indonesia's solar market," said Agus Suhendar, an energy analyst based in Jakarta. "But without a disclosed deadline and with local content rules that may be difficult to meet given current domestic manufacturing capacity, many international players will hesitate. PLN must provide certainty on pricing and schedules to attract serious bids."

Another challenge is grid integration. Much of Indonesia's grid infrastructure, especially outside Java, remains weak and fragmented. The tender's scattered approach will require associated grid reinforcements, which PLN has pledged to undertake but has not yet fully funded. Development costs, including land acquisition-often a contentious issue in the archipelago-could also drive up tariffs beyond PLN's ability to pay. The utility is already under financial pressure from subsidized electricity rates and coal contracts.

The 1.225 GW solar procurement process represents a major opportunity for Indonesia to accelerate its transition to renewable energy despite facing several challenges. PLN has indicated they will publish a detailed schedule in the coming week as well as revised guidelines for bidders. They are also considering an auction format where capacity will be awarded to the lowest yet responsible bidder.

At this point, developers should be watching the PLN e-procurement portal very closely because the next month will be critical for whether PLN can provide the transparency in schedule and the commercial terms required for the procurement process to be successful and unlock a significant wave of investments into Indonesia's solar supply chain and allow Indonesia to catch up with regional leaders like Vietnam and the Philippines. If important information remains unclear or hypothetical, then the procurement may not receive the level of competition necessary to maximize its impact.

With the world watching, Indonesia is at a pivotal point in determining its commitment to convert its abundant solar resources into a reality. The 1.225 GW solar tender is much more than just a procurement process because it serves as an indicator of Indonesia's willingness to harness its plentiful solar resources.