by Analyzing Historical Databases for
Solar Farm Project in Indonesia
FEATURED PAPER
By Tengku Rizki Fahril Mukti
Pekanbaru, Indonesia
ABSTRACT
Indonesia’s energy consumption is approximately 2 billion barrels of oil equivalent per year, around 85% of which is from Non-Renewable Energy and sourced from imports, leaving Indonesia in an energy-dependent situation. Indonesia’s location near the equator gives an advantage with the abundance of RE sources, especially Solar, but its potential is underutilized. The Indonesian Government set a target of 53% of energy produced from renewable sources in 2050, with solar energy as its centerpiece. Solar energy’s future is bright; investment in this sector is expected to increase, and it is imperative to facilitate the progress by providing a Parametric Model (CER) as a tool to estimate a Solar Farm project (Class 4 for Feasibility study). By doing so, the company can expedite the decision-making process and develop a new business case fast & efficiently.
Keywords: AACE, CAPEX, CER, Cost Estimate, Indonesia, Parametric Model, Renewable Energy, RUEN, Solar PV.
INTRODUCTION
- Indonesia’s Energy landscape and its challenges
As per 2024’s data[1], Indonesia consumes approximately 2 billion BOE (Barrel Oil Equivalent) of energy annually, an increase 7.46% from the prior year. From that figure, Coal (40.4%), Crude (28.58%) and Natural Gas (16.03%) constitute 84.65% of energy source, just miniscule amount of percentage sourced from renewable energy (15.35%), comprised mostly of Biofuel (4.49%), Biomass (3.46%), Hydropower (2.53%), Geothermal (1.55%) and very small percentage of Solar PP & Solar PV (0.30%). This figure shows how heavily reliant this country is on non-renewable fossil fuels and their derivative product.
Indonesia’s reliance on coal as the first and main energy source is not without reason; it is rich in coal and one of the largest coal producers (1st in the world) and exporters (2nd in the world)[2], the regulation is well-shaped to foster and sustain this status[3]. While it may be beneficial to source energy locally, it is neither economically nor environmentally sustainable[4].
More…
To read entire paper, click here
Author’s note: This paper was originally prepared during a 6-month long Graduate-Level Competency Development/Capacity Building Program developed by PT Mitrata Citragraha and led by Dr. Paul D. Giammalvo to prepare candidates for AACE CCP or other Certifications. https://build-project-management-competency.com/our-faqs/.
How to cite this paper: Mukti, T. R. (2026). Developing Class 4 Cost Estimate model by Analyzing Historical Databases for Solar Farm Project in Indonesia; PM World Journal, Vol. XIV, Issue IX, September Available online at https://pmworldjournal.com/wp-content/uploads/2026/09/pmwj168-Sep2026-Mukti-Cost-Est-Model-for-Solar-Farm-Project.pdf
About the Author
Tengku Rizki Fahril Mukti
Pekanbaru, Indonesia
Tengku Rizki Fahril Mukti is an engineer with nine years of professional experience in oil and gas sectors. During his career, he has an experience as a Design Engineer and Cost Estimator. He has been involved in several projects, including Fuel Terminal Facilities, Piping/Pipeline Construction, and Jetty Facilities throughout Northern and Southern Sumatera.
He holds a bachelor’s degree in Civil Engineering from Bandung Institute of Technology (ITB), and a certified engineer from The Institution of Engineers Indonesia (PII).
He is attending a distance learning mentoring course, under the tutelage of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Certified Cost Professional certification from AACE International.
Tengku Rizki resides in Pekanbaru, Indonesia, and his email address is tengkurizkifm@gmail.com
[1] Ministry of Energy and Mineral Resources, Republic of Indonesia. (2025). Handbook of Energy & Economic Statistics of Indonesia 2024. https://www.esdm.go.id/assets/media/content/content-handbook-of-energy-and-economic-statistics-of-indonesia-2024.pdf
[2] IEA, World Energy Balances, IEA, Paris https://www.iea.org/data-and-statistics/data-product/world-energy-balances, License: Terms of Use for Non-CC Material
[3] Andi, D.(2021). Porsi batubara di RUPTL 2020-2029 naik, transisi energi bakal sulit terlaksana . https://industri.kontan.co.id/news/porsi-batubara-di-ruptl-2020-2029-naik-transisi-energi-bakal-sulit-terlaksana
[4] Perdana, A. P.(2025). Coal Sustainability Challenges and Post-Mining Economy. https://www.kompas.id/artikel/en-tanda-tanya-keberlanjutan-batubara-dan-dampaknya-pada-lingkungan
