This publication highlights the urgency of renewable energy development in response to climate change and global targets such as the Paris Agreement and the Triple Renewable Energy Capacity Pledge. Solar energy, wind energy, and battery energy storage systems are identified as key technologies that need to be developed massively. Indonesia has a large market potential for renewable energy, both to meet domestic needs and export markets. The development of a domestic renewable energy manufacturing industry and its supply chain can provide significant benefits, including economic growth, job creation, improved national energy security, and potential reduction in the cost of renewable energy adoption. Increasing the capacity of solar power plants, wind farms, and energy storage systems, especially batteries, needs to be supported by preparing the conditions for a reliable domestic manufacturing industry so that the supply of key components such as solar modules, wind turbines, and battery cells is guaranteed and does not interfere with the operation of renewable energy plants. In addition, the existence of the supply chain in the country will provide greater benefits to the socio-economy in Indonesia through the creation of jobs, and also support the 8% economic growth target needed for the Golden Indonesia 2045.
To determine the readiness of the domestic manufacturing industry to produce renewable energy technologies, IESR has conducted an assessment study of the development of the renewable energy technology manufacturing industry in Indonesia, “Market Assessment of Domestic Manufacturing Industry for Renewable Energy in Indonesia”. The results of the study highlighted the opportunity for the manufacturing industry in Indonesia to develop solar module, wind turbine, and battery manufacturing businesses.