Dissemination of the Study on the Development of the Supply Chain Roadmap for the Solar Power Plant Industry in Indonesia
Background
The Indonesian government has made energy transition a key policy priority, including by making it one of the priority issues conveyed by President Prabowo Subianto at the G20 Summit in Rio de Janeiro in 2024. Furthermore, the government has established a net-zero emissions (NZE) target policy by 2060, as well as plans to phase out coal and accelerate renewable energy development in Presidential Regulation 112/2022 and a partnership agreement with G7 countries and international financing institutions under the Just Energy Transition Partnership (JETP).
By 2023, solar energy will be the primary source of renewable energy, contributing 73% of the global energy capacity of 346 GW (Ember, 2024). This significant figure significantly impacts Indonesia’s energy planning, leading to the integration of this form of energy into regulations, electricity sector planning, and strategies to achieve net-zero emissions. The NZE 2060 document targets Indonesia to utilize 462 GW of solar energy, making it the country’s most dominant renewable energy source. With a technical solar energy potential of 3,294 GWp (ESDM, 2022) and the potential to reach nearly 20,000 GWp depending on land availability and suitability (IESR, 2021), Indonesia has the potential to significantly benefit from the extensive application of solar energy technology for utility-scale and small-scale facilities, including those located on land, in water bodies, and on rooftops.
Despite being a key focus in Indonesia’s renewable energy planning, achievement of the solar power plant (PLTS) utilization target remains minimal. As of August 2024, the installed capacity of solar power plants (PLTS) of various scales had only reached 717.71 MW (ESDM, 2024). This figure illustrates the gap between the current state of renewable energy in Indonesia and the target that needs to be achieved. The government and PLN (State Electricity Company) are striving to boost solar power plant (PLTS) development in Indonesia through the National Solar Power Plant (PSN) priority program and through the 2021-2030 Electricity Supply Business Plan (RUPTL). This RUPTL includes 4.7 GW of solar power plants, some of which have entered the procurement phase.
To achieve the ambitious solar power plant (PLTS) targets set out in various policy and regulatory documents, it is crucial for Indonesia to encourage the growth of domestic industry and strengthen existing industrial supply chains. Several solar cell and module manufacturers, such as Trina Solar and SEG Solar, have begun establishing production facilities in Indonesia. This development is a positive indication that Indonesia is competitive in the global market. In addition to cells and modules, Indonesia also has the potential to become a player in the silica, glass, and floater industries. To truly enhance Indonesia’s competitiveness as a solar power plant component manufacturing hub, a more integrated and systematic strategy is needed. This includes supportive government policies, investment incentives, and technical and human resource capacity development.
Since 2024, the Institute for Essential Services Reform (IESR) has completed a study on the development of solar photovoltaic manufacturing in Indonesia. This study is believed to provide a key foundation for Indonesia to develop its solar manufacturing potential to capture global opportunities. Therefore, in an effort to develop this study into a roadmap for accelerating the solar photovoltaic manufacturing industry in Indonesia, IESR intends to disseminate the study’s findings in the form of a roadmap for solar photovoltaic manufacturing in Indonesia.
Objective
This event aims to:
- Present the current state (opportunities and challenges) of the solar photovoltaic manufacturing industry landscape in Indonesia
- Disseminate the results of a study in the form of a roadmap for the solar photovoltaic manufacturing industry in Indonesia
- Gather input from relevant stakeholders to improve the roadmap for the solar photovoltaic manufacturing industry in Indonesia
Speakers
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Fabby Tumiwa - Direktur Eksekutif IESR
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Alvin Sisdwinugraha - Power Systems and Renewable Energy Analyst - IESR
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Abraham Octama - Power System Analyst - IESR
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Binoni Tio A. Napitupulu - Director of Industrial Resilience and Business Climate - Ministry of Industry
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I Made Sandika - Chairman - Indonesian Solar Module Manufacturers Association
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Andi Herlambang - Country Sales Manager Indonesia - LONGi Solar
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Arya Rezavidi - Principal Researcher - National Research and Innovation Agency (BRIN)
