Jakarta—Solar energy adoption continues to increase globally, reaching 1.6 TW by 2023. In Southeast Asia, solar energy capacity is recorded at 25.9 GW. The Institute for Essential Services Reform (IESR) suggests that Indonesia strengthen the supply chain of the solar power plant industry to increase its international competitiveness, support the adoption of solar power plants, and create jobs that can spur economic growth.
To accelerate the development of the domestic solar power plant and its component industries, IESR, together with the Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves), the Ministry of Energy and Mineral Resources (MEMR), and RE100 Climate Group, will organise the Indonesia Solar Summit (ISS) 2024.
IESR Sustainable Energy Access Program Manager Marlistya Citraningrum explained that solar energy should be a key strategy in achieving the renewable energy mix target and accelerating the energy transition.
“Indonesia Solar Summit 2024 will discuss important strategies to strengthen the domestic solar industry and obtain commitments from the government and business entities to encourage the adoption of solar power in Indonesia,” Marlistya said during the Indonesia Solar Summit 2024 Media Luncheon on Tuesday, August 13.
Meanwhile, IESR Electricity and Renewable Energy Analyst Alvin Putra Sisdwinugraha added that Indonesia has more than 3,295 GW of solar energy potential. Developing solar module technology dominated by silicon-based technology, particularly monocrystalline, has shown higher efficiency.
“Over the past five years, solar module prices have dropped by 66%, to around 14.5 USDc/Wp (around Rp 2,300/Wp). This is an opportunity for Indonesia to strengthen its solar industry supply chain to compete with imported products,” Alvin said.
Although Indonesia’s solar module production capacity increased to 2.3 GW per year by June 2024, Alvin highlighted that local solar modules still lag behind imported products in size, efficiency, price, and tier-1 category. Without tier-1 certification, it is difficult for domestic solar modules to obtain financing from international financial institutions, while the price of local solar power plants is also 30-45% higher than imported products.
IESR encourages the government to improve the competitiveness of local solar power plants by providing fiscal and non-fiscal incentives to lower production costs, especially if they are export-oriented. In addition, cooperation with global manufacturers for technology transfer and regulatory and domestic market certainty are needed. Alvin also highlighted the importance of periodic tender procurement in addressing low domestic demand.
Arya Rezavidi, Principal Expert Engineer at the Energy Conversion and Conservation Research Center of the National Research and Innovation Agency (BRIN), emphasised that a strong solar power supply chain will increase the added value of minerals essential for solar module manufacturing.
“The development of PLTS is not only to achieve the renewable energy mix target but also to show that Indonesia masters competitive PLTS technology,” Arya said.
From the industry side, Wilson Kurniawan, Chief Financial Officer (CFO) of PT Trina Mas Agra Indonesia, stated that the solar cell and module industry needs support in the form of certainty and acceleration of the realization of solar panel demand, priority use of domestically produced solar panels, regulations to support the growth of supporting industries, and policies that encourage upstream investment and protection of domestic manufacturers through the imposition of import duties.
The Indonesia Solar Summit (ISS) 2024, held on Wednesday, August 21, 2024, carries the theme “Building Indonesia’s Solar Power Supply Chain to Accelerate Energy Transition and Support Green Industry” as part of the Indonesia Sustainability Forum 2024 pre-event. (Hartatik)
