Jakarta, August 21, 2024 – The development of solar energy in Indonesia in the last 5 years discusses various phenomena and trends. In sectors such as households and commercial, there is an increase in demand for the installation of rooftop solar power plants. In large-scale solar power plants (utilities), a number of challenges such as an unfavorable investment environment, TKDN regulations, and the absence of guarantees are challenges to the development of solar energy and the entry of investors.
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), in the opening of the 2024 Indonesia Solar Summit (ISS) explained that Indonesia currently has the opportunity to become a solar hub in the Southeast Asia region.
“The global momentum towards the energy transition and the development of renewable energy has made global investors actively seek opportunities in countries with growing economies such as Indonesia. Therefore, if Indonesia can position itself as a solar hub in Southeast Asia, we can attract significant investment and become an economic stimulus,” he said.
In this forum, IESR declared its collaboration with the Climate Group RE100, a global movement committed to the business sector’s commitment to using 100 percent renewable energy to support its business operations.
“RE100 has committed to change with over 430 companies joining the movement with an aggregate electricity demand of over 555 TWh/year and 121 global companies reporting operations in Indonesia alone,” said Ross Mitchell, Senior Campaign Manager of RE100.
In his keynote speech, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, also agreed on the need for Indonesia to build a solar energy industry from upstream to downstream.
“Indonesia needs to expand its domestic value chain and we are currently building the environment. Indonesia signed a memorandum of understanding (MoU) with Singapore on Renewable Energy cooperation. Through cooperation with Singapore, we have attracted investment for power developers of USD 30-50 million, PV manufacturers of USD 1.7 billion, battery and inverter manufacturers of USD 1 billion,” said Luhut.
Puah Kok Keong, CEO of the Energy Market Authority of Singapore stated that awareness of climate impacts and the need to provide energy, encouraged Singapore to realize this cooperation with Indonesia.
“Singapore is looking for various options to meet the energy needs and mitigate the impacts of climate change from neighboring Singapore. Cooperation with Indonesia is inevitable,” said Keong.
Andhika Prastawa, Principal Engineer, National Research and Innovation Agency said that the Indonesia-Singapore cooperation is a major impetus for the growth of the solar industry in Indonesia.
“This cooperation must be seen not only as exporting electricity, but as an opportunity for the growth of the solar industry in Indonesia. This has become a requirement in the MoU. We must not miss the opportunity to develop the solar industry and research and development (R&D) opportunities in the field of solar panels,” he said.
Dewanto, VP of Renewable Energy Variables at PLN stated that his party is trying to ensure that the PLTS supply chain system in Indonesia is built on the basis of technology and knowledge transfer.
“International investment in the PV supply chain in Indonesia not only encourages funding, but also accelerates knowledge transfer, especially to ensure the quality of PV that meets international standards,” said Dewanto.
Eka Satria, CEO of Medco Power Indonesia emphasized the importance of government support in determining the development of the solar industry in Indonesia.
“Government support is needed to accelerate and expand the potential of the renewable energy value chain in Indonesia, such as a supportive regulatory and legal framework, incentives and support for renewable energy value chain actors, and the development of an infrastructure ecosystem,” said Eka.
The Indonesia Solar Summit 2024 is organized by the Institute for Essential Services Reform (IESR) in collaboration with the Coordinating Ministry for Maritime Affairs and Investment and the Ministry of Energy and Mineral Resources (MEMR) of the Republic of Indonesia. ISS 2024 is part of the pre-event of the Indonesia Sustainability Forum 2024.
