Focus Group Discussion Roadmap Solar PV Industry Supply Chain in Indonesia

Background

The Indonesian government has made energy transition a key policy priority, including by making energy transition one of the priority issues presented by President Prabowo Subianto at the G20 Summit in Rio Jenairo last 2024. Furthermore, the government also set a net-zero emission (NZE) target policy by 2060, as well as planned coal phase-out and accelerated renewable energy development in Presidential Regulation 112/2022, and partnership agreements with G7 countries and international financing institutions with the Just Energy Transition Partnership (JETP).

By 2023, solar energy is the leading source of renewable energy, accounting for 73% of the global energy capacity of 346 GW (Ember, 2024). This sizable figure significantly impacts Indonesia’s energy planning, leading to the integration of this form of energy into regulations, power sector planning, and strategies to achieve net-zero emissions. Indonesia, with a technical solar energy potential of 3,294 GWp (MEMR, 2022) and the potential to reach nearly 20,000 GWp depending on land availability and suitability (IESR, 2021), stands to benefit significantly from the extensive application of solar energy technology for utility-scale to small-scale facilities, including those located on the ground, on water bodies, and on rooftops.

Despite having become a backbone in Indonesia’s energy planning, the achievement of solar power utilization targets is still minimal. By the end of 2023, the installed capacity of solar power plants in various scales will only reach 573.8 MWp. The government and PLN are trying to boost the development of PLTS in Indonesia with the rooftop PLTS PSN priority program and through the 2021-2030 Electricity Supply Business Plan (RUPTL), there are 4.7 GW of PLTS in this RUPTL, some of which have entered the procurement period.

To achieve the ambitious solar PV targets set out in various policy and regulatory documents, it is crucial for Indonesia to encourage the growth of domestic industries and strengthen the supply chain of existing industries. Several solar cell and module manufacturers have started to build production facilities in Indonesia, such as Trina Solar and SEG Solar. 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 improve Indonesia’s competitiveness as a manufacturing center for solar PV components, a more integrated and systematic strategy is needed. This includes supportive government policies, incentives for investment, and development of technical capacity and human resources.

Since last year, the Institute for Essential Services Reform (IESR) has completed a study on the development of photovoltaic solar energy manufacturing in Indonesia, this study is believed to be a key foundation for Indonesia to develop its solar energy manufacturing potential to capture global opportunities. Therefore, in an effort to take this study one step further and turn it into a roadmap to accelerate Indonesia’s photovoltaic solar energy manufacturing industry, IESR would like to conduct a Focus Group Discussion on planning a roadmap for photovoltaic solar energy manufacturing in Indonesia.

Objectives

This event aims to:

1. Present the current state (opportunities and challenges) of the photovoltaic solar energy manufacturing industry landscape in Indonesia
2. Obtain inputs from relevant stakeholders, in developing a roadmap for the photovoltaic solar energy manufacturing industry in Indonesia
3. Determine short-term & long-term priorities in accelerating the photovoltaic solar energy manufacturing industry in Indonesia