Setting Up an SPV for Solar and BESS Projects in Indonesia

If you are planning a solar PV and battery storage project in Indonesia, the first thing to set up is the company that will own it. Projects here are developed through a special purpose vehicle, or SPV: a PT PMA that holds the license, signs the power purchase agreement with PLN, and owns the plant. 

Lenders and PLN both expect the project to sit in its own company, so the SPV is where every project starts.

The timing is good. PLN has confirmed 21 solar and solar-plus-storage projects totaling 513 MWp for commercial operation between 2026 and 2028, plus a diesel replacement program covering 741 sites. To bid for any of them, you need the SPV ready before the tender, with the right business classification, capital, and site approvals already in place.

This guide walks you through that setup: the entity, the capital and ownership rules, and complete setup process.

PLN Capital Pipeline

President Prabowo Subianto directed ESDM to replace diesel generators (PLTD) with solar generation. Because solar output drops to zero after dark, battery storage is essential to bridge the gap for 24-hour power needs.

PLN's confirmed pipeline outlines where capital is deploying first: 

Note: On the manufacturing side, Aslan Energy Capital committed USD 1.75 billion to construct an 8 to 15 GWh BESS gigafactory on 40 hectares within the 1,500-hectare Palu Special Economic Zone (SEZ). 

What is an SPV in Indonesia?

As an investor, you need to have an SPV to capitalize on the solar energy market in Indonesia. An SPV in Indonesia is a Limited Liability Company set up to hold a single project's assets, permits, and contracts, ring-fenced from the sponsor's other businesses. 

For a foreign investor, that vehicle takes the legal form of a PT PMA (Perseroan Terbatas Penanaman Modal Asing). It is a foreign-owned limited liability company registered through Indonesia's Online Single Submission (OSS) system.

Lenders and PLN (Perusahaan Listrik Negara, Indonesia's state-owned electric utility company) prefer this structure. 

 A PT PMA allows you to:

• Isolate project risk
• Raise non-recourse project financing against future power sale revenue
• Gives PLN a single counterparty for the Power Purchase Agreement (PPA), known locally as the Perjanjian Jual Beli Tenaga Listrik (PJBL). 

Correct KBLI Codes for your SPV

Indonesia's KBLI codes determine which licenses apply to your business. For a solar PV plus BESS generation project, the relevant code is KBLI 35111 (Pembangkitan Tenaga Listrik, Electric Power Generation). This code covers generation from any energy source including: 

• Solar photovoltaic
• Hybrid solar-battery systems
• Standalone battery storage tied to a generation asset

This KBLI code is classified as high risk which triggers licensing requirements (more on this below). 

For more information about KBLIs, you can read our guide or contact our local experts in Indonesia for an in-depth explanation. 

Capital Requirements for your SPV

Under Peraturan Kepala BKPM No. 5 Tahun 2025 and PP No. 28/2025, the rules governing PT PMA capital are:

• Total investment value: more than IDR 10 billion (excluding land and buildings), calculated per KBLI 5-digit code, per project location.
• Paid-up capital: IDR 2.5 billion per company, down from the previous IDR 10 billion threshold.
• Capital Lock-Up: Article 27 of BKPM Regulation No. 5/2025 requires investors to keep paid-up capital in the company bank account for at least 12 months from the deposit date to demonstrate committed investment. 

For a capital-intensive solar PV and BESS project, actual construction and equipment costs will comfortably exceed the IDR 10 billion investment floor. The lower paid-up capital requirement mainly benefits smaller developers structuring the initial holding company before drawing down project debt.

Foreign Ownership Rules

Under Presidential Regulation (Perpres) No. 10/2021 as amended by Perpres No. 49/2021, you can own up to 100% equity in power generation projects with a capacity above 10 MW. 

Because all primary utility-scale projects on PLN's 513 MWp pipeline exceed this 10 MW threshold, foreign sponsors can fully own their PT PMA without needing a mandatory local equity partner. 

(Note: Projects under 1 MW fall within domestic MSME reservation and partnership categories). 

Options for Entering the Solar Energy Industry

There are two ways to enter the solar and energy storage industry in Indonesia through an SPV:

• Route A - Independent Power Producer (IPP): Your SPV builds, owns, and operates the solar PV and BESS assets, then sells electricity to PLN under a PJBL. This is the standard route for the 100 MWp-plus projects on PLN's current list, such as the floating solar plants at Gajah Mungkur and Saguling.
• Route B - PLN-operated or co-developed project: For smaller, remote, or diesel-replacement sites, PLN sometimes runs the generation asset directly or brings in a partner for land, EPC work, or equipment supply while PLN retains the electricity-supply license and offtake role. Several of the 21 confirmed projects, including sites in Nusa Tenggara Timur and Bangka Belitung, fall into this category.

Most investors targeting utility-scale solar plus BESS (including anyone eyeing the 513 MWp pipeline) will take Route A and need a full IUPTLU electricity-supply license. 

Smaller developers or equipment suppliers may find a co-development or supply arrangement faster to execute.

Ask for advice from our local experts in Jakarta to know which pathway suits your plans to expand in Indonesia. 

Requirements for a Solar PV and BESS SPV in Indonesia

The eight steps below run in the order a project follows in practice. The first three build the company and secure the site. Steps four to seven take the project from bid to license. Local content applies from the bid onward.

1. Incorporate the PT PMA

The SPV is a PT PMA with at least two shareholders, one director, and one commissioner, registered in the OSS system under KBLI 35111. On registration, OSS issues the Business Identification Number (NIB), which the company uses for every permit application that follows.

Emerhub incorporates the PT PMA, structures the shareholding, and opens the corporate bank account for the paid-up capital. 

See our guide to setting up a PT PMA for the full process.

2. Secure spatial approval for the site (KKPR)

With the NIB in place, the SPV applies for KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang), which confirms that the project site conforms to the regional spatial plan. KKPR replaced the former location permit (Izin Lokasi). Environmental approval and construction permits cannot be applied for until KKPR is issued.

For floating solar, the approval covers the reservoir surface and any shore-based equipment, and involves the authority that manages the water body. 

3. Obtain environmental approval

Every generation project needs environmental approval before construction: a full environmental impact assessment (AMDAL) or the lighter UKL-UPL, depending on capacity, footprint, and location. Large ground-mounted plants, floating solar on reservoirs, and sites in or near protected areas require a full AMDAL.

A full AMDAL includes scoping, public consultation with affected communities, and an environmental management and monitoring plan. The project reports against that plan for the life of the license.

4. Prepare the feasibility study

The feasibility study (Studi Kelayakan Usaha Penyediaan Tenaga Listrik) is the core technical and financial document for the project. It is written in Bahasa Indonesia and used twice: first in the bid to PLN, then in the IUPTLU license application (step 7).

It covers:

• Financial feasibility. The capital structure, tariff assumptions, and the project's ability to service debt over the license term
• Technical feasibility. Plant design, battery sizing and dispatch, resourcing, and operations and maintenance
• Grid interconnection. The connection point and confirmation that the local network can absorb the output

The study must be consistent with PLN's electricity supply business plan (RUPTL), which sets the capacity quota for each region. A project that does not fit a RUPTL quota cannot be procured.

5. Win PLN's procurement

PLN buys power from independent producers under Presidential Regulation 112/2022. Two routes exist:

• Direct selection (seleksi langsung). The default for solar. PLN issues a capacity quota from the RUPTL and invites bids. Bidders compete on price under a ceiling tariff (harga patokan tertinggi) that varies by region and plant size, and are assessed on administrative, technical, and financial criteria.
• Direct appointment (penunjukan langsung). For plant expansions, purchases of excess power, and assignments made by the minister. Evaluation runs within 90 days of submission.

The bid package includes the feasibility study, evidence of the SPV's capital and ownership, the site approvals from steps 2 and 3, and a local content plan (step 8).

6. Sign the PJBL with PLN

The winning SPV signs a power purchase agreement, the PJBL (Perjanjian Jual Beli Tenaga Listrik), with PT PLN (Persero). PLN commits to buy the plant's output at the agreed tariff for the contract term, typically 20 to 30 years from the commercial operation date. For solar-plus-storage, the PJBL also sets the dispatch terms for the battery.

Renewable PJBLs follow a standard framework issued by the Ministry of Energy and Mineral Resources, which sets the minimum terms on risk allocation, force majeure, termination, and payment.

7. Apply for the IUPTLU license

The IUPTLU (Izin Usaha Penyediaan Tenaga Listrik untuk Kepentingan Umum) is the license to generate and sell electricity to the public grid. The SPV applies through OSS after the PJBL is signed, because the application requires evidence of the offtake agreement.

The application draws on the documents already prepared: the feasibility study, the PJBL, the environmental approval, and the KKPR. The license is issued by the ministry for projects connected to PLN's national grid, and states the plant's capacity, location, and business area.

Construction can start once the IUPTLU and construction permits are in hand. Commercial operation requires a further operational worthiness certificate (SLO) for the plant.

8. Meet local content requirements (TKDN)

Solar modules and other equipment installed in a plant selling to PLN must meet the domestic component level (TKDN) threshold in force when the PJBL is signed. The threshold under Ministry of Industry Regulation 23/2023 is 60% for modules, and the temporary import allowance under Ministry of Energy Regulation 11/2024 closed in June 2025. Projects financed at least 50% by multilateral or bilateral development lenders are exempt.

Modules can meet TKDN through local assembly with imported cells, so the requirement shapes sourcing and financing rather than ruling out imported technology. Battery cells and inverters carry their own thresholds.

Start Your SPV on Solar PV + BESS in Indonesia with Emerhub

Setting up a Special Purpose Vehicle (SPV) for your solar and BESS assets requires a properly structured PT PMA. Emerhub handles the incorporation process from end to end to ensure your entity meets all BKPM capital requirements and OSS registration standards under KBLI 35111.

Our local corporate experts manage company incorporation, shareholder structuring, bank account setup, and NIB issuance. By securing a compliant corporate foundation, your team can focus on securing PLN project allocations and executing power purchase agreements.

Ready to incorporate your PT PMA in Indonesia? Speak with our local legal and incorporation specialists in Jakarta to begin your setup.