Liga Asuransi – Makassar is slowly gaining attention as a pioneer in energy transformation in Eastern Indonesia. Amidst the city’s growing local economy, a number of shopping centers and large business groups in the city have begun incorporating solar panels (PLTS) as part of their clean energy strategies. For example, Panakkukang Mall is currently building a rooftop solar panel with a capacity of around 1.24 MWp, which is projected to generate around 1,700 MWh per year. Meanwhile, the large business group KALLA plans to install six solar panels—including at Nipah Park and a Toyota outlet—with a total capacity of 887.6 kWp.
What do these steps mean? They’re not just a nod to the “green” trend—they’re a clear signal that Makassar’s economy is shifting toward renewable energy. Entrepreneurs, developers, and EPCs (Engineering, Procurement & Construction) in the city have a golden opportunity to participate in the ongoing solar power revolution.
But don’t assume everything will be smooth sailing. Solar power projects, both large and small, carry significant technical, operational, and financial risks. Without proper protection, a single incident with a panel, inverter, or roof structure could derail profit margins, delay operations, and even damage reputations.
Now is the time to seriously consider project protection. Ensure every solar power plant project in Makassar is equipped with the right insurance from the planning stage. Contact L&G Insurance Brokers for a protection consultation and risk assessment tailored to your project’s needs.
Development of Solar Power Plants in Makassar & Eastern Indonesia
While the spotlight on renewable energy projects has traditionally focused on Java and Bali, the spotlight is now shifting eastward. Makassar and the surrounding areas are emerging as a new driver for solar power plant development, particularly for commercial and rooftop projects.
One of the main driving factors is the high level of solar radiation throughout the year. Geographically, South Sulawesi is an area with stable solar energy potential—even during the rainy season, radiation levels do not drop significantly. This makes solar power plant investment in Makassar more viable than in some other regions that still rely on conventional electricity sources.
Local governments and PLN (State Electricity Company) have also begun to focus on this area. In recent years, several commercial rooftop solar power projects have emerged:
- Panakkukang Mall – The largest rooftop solar power plant installation in Eastern Indonesia, with a capacity of 1.24 MWp.
- Nipah Park & Toyota Kalla – Part of the KALLA Group expansion, totaling 887.6 kWp.
- Local industry and warehousing – Start looking at solar power plant rental or EPC schemes with OPEX schemes to reduce long-term electricity costs.
Not only the private sector, but government programs such as “Rooftop Solar Power Plants for 1 Million Homes” and the 2060 Net Zero Emissions target are also driving the adoption of this technology. The eastern region, previously synonymous with energy backwardness, now has the potential to become a role model for the solar-based energy transition.
Challenges Behind Development
Despite the bright prospects, challenges cannot be ignored. These range from inconsistent installation quality, limited local technical resources, to licensing and network reliability issues. One crucial issue often overlooked by investors is project risk protection.
Solar panels and inverters are highly sensitive to strong winds, extreme rainfall, lightning strikes, and even electrical fires. In Makassar, weather conditions can change rapidly, especially during the transitional seasons. Without adequate insurance coverage, damage from just one storm can cause billions of rupiah in losses.
This is why more and more EPCs and building owners in Makassar are starting to include solar power plant projects and operational insurance as part of their business strategy—not just as a formality.
The Economic Impact of Solar Power Plants on Businesses in Makassar
The development of solar power plants (PLTS) in Makassar is not only about energy transition but also opens up a wide range of economic impacts. The city is slowly transforming into a renewable energy ecosystem, offering real opportunities for local businesses, from large industries to micro, small, and medium enterprises (MSMEs).
- Energy Efficiency = Production Cost Savings
Many businesses are beginning to realize that solar power plants (PLTS) are not just a green trend, but a real solution for lowering electricity costs. Several factories and large shopping centers in Makassar have reported savings of up to 30% on monthly electricity bills after adopting rooftop solar systems. These savings are then channeled toward business expansion, workforce recruitment, or product innovation.
- Growth of Local Derivative Industries
The growing demand for solar power plants (PLTS) is creating new opportunities for local contractors, maintenance providers, and component suppliers. Previously, many renewable energy projects had to import all the expertise from outside the region. Now, training and certification for solar power plant technicians are being intensified by local institutions and universities in South Sulawesi, creating new and sustainable jobs.
- The Attraction of Property & Industrial Investment
Investors are beginning to consider Makassar as a strategic location for environmentally friendly property projects. Buildings with green building certification and the use of solar power plants are now considered more attractive in the long term—both for rental and resale. This places Makassar on the new map of clean energy investment in eastern Indonesia.
- Awareness of Risk Management and Insurance
With the rise in solar power plant installations, businesses are increasingly recognizing the importance of protection against both physical and financial risks. Solar installations require significant initial investment, and even the slightest disruption can impact operations. Therefore, renewable energy-specific insurance products are gaining popularity to protect assets and ensure business continuity.
Strategic Challenges & Opportunities for Solar Power Plant Development in Makassar
Despite the rapid growth of rooftop and industrial-scale solar power projects in Makassar, there are a number of structural challenges that businesses, local governments, and investors need to address. However, at the same time, there are significant strategic opportunities to establish the city as a solar energy pioneer in Eastern Indonesia.
- Regulatory Challenges and Grid Access
One issue that continues to frequently arise is the limited capacity of the PLN electricity grid to handle exported power from rooftop solar systems. Despite the implementation of net metering policies, in practice, technical and administrative bottlenecks often occur, delaying project implementation. For EPC contractors and developers, this requires a well-thought-out design and permitting strategy to ensure efficient project implementation.
- LimitationsTechnicianand Local Technical Standards
The availability of skilled labor in the solar power plant (PLTS) sector remains relatively limited in Makassar. Many technicians lack official certification that meets international standards. This can hinder installation quality and increase the risk of system damage if not handled professionally. However, this also presents a significant opportunity for educational institutions and industry players to collaborate on solar power plant (PLTS) training programs.
- Tropical Weather Conditions and Infrastructure Resilience
Makassar has high levels of solar radiation year-round—ideal conditions for solar power plants. However, the region also frequently experiences extreme weather, strong winds, and heavy rainfall. System designs that are not resilient to local conditions can increase the risk of damage to panels, mounting systems, and inverters. This is where renewable energy insurance plays a crucial role, providing financial protection against potential losses due to extreme weather events.
- Long-Term Economic and Investment Opportunities
On the other hand, investment opportunities are vast. The growth of industrial areas around Makassar Port and Sultan Hasanuddin Airport, along with the development of the tourism and commercial property sectors, is creating stable and long-term electricity demand. With increasingly affordable solar technology, developers and investors have the ideal momentum to expand into the industrial and commercial sectors.
- Government Support and ESG Trends
Makassar also benefits from national and global trends encouraging the adoption of Environmental, Social & Governance (ESG) principles. Many large corporations now require their supply chains to use clean energy. This makes solar power plants not only an efficient option but also a competitive business strategy for attracting international partners and funding.
The Role of EPC, Developers, and Insurance in Accelerating the Makassar Solar Power Plant Project
Accelerating the energy transition in Makassar will not happen naturally. Strong synergy is needed between EPC (Engineering, Procurement, Construction) industry players, energy developers, and the financial sector—including insurance—to ensure solar power plant projects are not only built quickly but also sustainable, safe, and profitable in the long term.
- EPC: The Vanguard of Quality and Efficiency
EPC companies play a vital role in ensuring that each solar power project is designed and built to the highest technical standards.
They must be able to:
- Develop a solar power plant system design that is suitable for Makassar’s tropical climate, including anticipating humidity, strong winds, and potential corrosion.
- Optimize the use of components such as inverters and mounting systems to achieve maximum energy efficiency.
- Maintaining the construction timeline so that the project is not delayed due to technical or licensing constraints.
The quality of the EPC will significantly determine the return on investment (ROI) and longevity of a solar power system. In an increasingly competitive market, an EPC that can guarantee project performance and safety will be a key strategic partner for investors and building owners.
- Developer: Motor of Investment and Innovation
Developers play a role as market drivers—they design business plans, secure land or rooftops, and seek project financing. In the Makassar context, developers need to:
- Develop a flexible and attractive PPA (Power Purchase Agreement) business model for the local industrial and commercial sectors.
- Establish cooperation with local governments and PLN to accelerate the licensing process.
- Integrating solar power solutions with smart energy approaches such as energy storage, demand management, and digital monitoring.
Makassar, with its strategic position as the economic hub of the Eastern Region, opens up opportunities for developers to become pioneers of large projects that can serve as examples for other regions.
- Insurance: A Financial Shield That Should Not Be Forgotten
One aspect often overlooked by many solar power plant operators is project insurance protection. Yet, solar power systems face various risks.risk like:
- Damage due to extreme weather (strong winds, heavy rain, lightning strikes)
- Fire or short circuit in the panel and inverter
- Theft or vandalism especially on large scale projects in open locations
- Risks during the construction and component delivery phase (marine cargo & erection all risks)
Without adequate protection, a single incident can erode profit margins and even derail a project. This is where renewable energy and engineering insurance plays a crucial role—providing comprehensive protection from construction to operation, while also bolstering investor and lender confidence.
Recommendation
Makassar is at a crucial point in the energy transition. With abundant solar potential, local government support, and a growing economy, the city is not just a consumer of renewable energy—it’s a role model for eastern Indonesia in developing modern, efficient, and sustainable solar power plants (PLTS).
However, the success of a solar power plant project isn’t solely determined by technology and regulations. A well-thought-out risk protection strategy is a crucial foundation for ensuring any investment can withstand various uncertainties, from extreme weather to material losses due to accidents or theft.
Therefore, we recommend the following strategic steps for EPC players, developers, and industrial and commercial property owners in Makassar:
- Conduct in-depth feasibility studies including technical and financial risk analysis from the planning stage.
- Choose a high-quality EPC that has experience and a good track record in tropical solar power projects.
- Prepare a comprehensive insurance scheme ranging from marine cargo for panel delivery, Erection All Risks for the construction period, to property & renewable energy insurance during operations.
- Build long-term collaborations with experienced insurance brokers who understand the characteristics of renewable energy projects in Indonesia.
- Monitor and evaluate the performance of the solar power system regularly to maintain efficiency and extend the life of the investment.
With these steps, Daeng City will not only become a robust solar power plant hub but also a solar energy ecosystem capable of attracting significant investment and creating economic multiplier effects in other sectors such as manufacturing, services, and tourism.
📞 For consultation and protection solutions for your solar power plant project, contact L&G Insurance Broker at 0811-8507-773 or visit www.lngrisk.co.id.
As a trusted insurance broker, L&G is ready to help you create the right protection program — from planning to operation.
