Jakarta, August 21st 2024 – The government has a major role in designing the renewable energy industry in Indonesia. A supportive policy framework will support the growth of the renewable energy industry while encouraging demand creation.

Apit Pria Nugraha, Head of the Green Industry Center, Ministry of Industry stated that as an effort to create demand, the Green Industry Center has created one of the green industry standards that includes energy use as one of the indicators.

“In the near future, we will also set an upper limit on emissions for the industrial sector. With the determination of the upper limit on emissions, all industries are required to report their environmentally friendly profile, especially their emissions. To meet the low-carbon target, a transformation to renewable energy is needed, for example by utilizing PLTS,” he said in a discussion at the 2024 Indonesia Solar Summit.

Hasyim Daeng Barang, Director of Mineral and Coal Downstreaming, Coordinating Ministry for Economic Affairs, expressed the need for an increasingly urgent transition.

“During 2022 to 2023, the Ministry of Investment has created a roadmap for downstream investment guidelines until 2045. The mapping of solar panel investment is not far from the silica industry so that its integration is easier to connect,” said Hasyim.

Alhaqurahman Isa, Coordinator of Services and Supervision of Various New and Renewable Energy Businesses, Ministry of Energy and Mineral Resources, stated that MEMR continues to strive to provide a supportive policy framework for the growth of the Indonesian solar industry.

“One of the most recent is yesterday we issued Ministerial Decree No. 11/2024 concerning Local Content Requirement (LCR) for the development of electricity infrastructure,” he said.

Haqi continued by explaining that currently Indonesia is still constrained by a number of things for the development of the solar industry such as funding, infrastructure, local industrial capacity, supply chain, and (transfer) technology.

The 2024 Indonesia Solar Summit is organized by the Institute for Essential Services Reform (IESR) in collaboration with the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of Energy and Mineral Resources (ESDM), and in partnership with RE100. The 2024 Indonesia Solar Summit (ISS) is themed “Building the Indonesian Solar Power Supply Chain to Accelerate Energy Transition and Support Green Industry”. ISS 2024 is a pre-event of the 2024 Indonesia Sustainability Forum.