Jakarta, September 11, 2025 – Many parties are promoting the use of solar energy to achieve emissions reduction and economic growth targets. To achieve this economic advantage, Indonesia must ensure that, in addition to having a high installed capacity, it also must have a local solar module industry to meet solar panel needs domestically.
Currently, the Indonesian solar panel industry’s production capacity is 10 GW per year. This production has not been fully absorbed by the market, as domestic solar panel demand is around 6 GW per year.
Farah Heliantina, Assistant Deputy for Energy Transition Acceleration at the Coordinating Ministry for Economic Affairs, stated in the session “Localizing Value Chain for National and Global Demand” at the Indonesia Solar Summit (ISS) 2025 that the government is currently working to encourage greater demand for solar modules from industrial areas.
“This way, we can encourage the Indonesian solar industry to grow even further,” she said.
Solehan, Director of Machinery & AME Industry at the Ministry of Industry, stated that with its natural and mineral potential, Indonesia can also focus on the upstream industrial sector.
“With our abundant upstream resources, such as quartz sand, we are considering developing upstream sectors of the solar industry, such as polysilicon and wafer manufacturing,” he said.
Muriel Watt, an analyst at ITP Renewables Australia, shared her experience in encouraging industry-based scientific research, including integrating research with industry, or encouraging industry to establish research teams. Having its own research team will allow industry to gain faster access to technological innovation. Researchers will receive direct input on market specifications, allowing for the development of technological features directly to meet market needs.
“Furthermore, access to funding will be a game-changer for industry growth, in addition to the need for long-term planning, including incentive arrangements,” said Muriel.
Arya Rezavidi, Principal Researcher at the National Research and Innovation Agency (BRIN), stated that the solar industry in Indonesia must move away from a demand-driven pattern, a growth pattern that only meets existing market demand.
“Once we can master technology, we can open new markets, just as China did a few years ago. So, the focus is on mastering technology, and market demand will follow,” said Arya.
