Around the world, there are increasing efforts underway to decarbonize the electricity generation system to mitigate the environmental impacts including climate change. While Indonesia has a huge potential for new and renewable energy, particularly solar photovoltaic, Indonesia has been largely dependent on fossil fuels. As of 2017, the installed capacity for solar photovoltaic in Indonesia was 78.5MW and this was only 0.04% of the theoretical solar potential, which is around 207.9GW($4.8kWh/m^2/day$). With the case of solar photovoltaic, this paper examined the reasons of low adoption of the technology and the challenges of energy transition in Indonesia from the policy and institutional perspectives.