The ministry's Deputy for Infrastructure and Transportation Coordination, Rachmat Kaimuddin, stated in a thematic discussion of the Indonesia International Sustainability Forum (ISF) 2024 here on Friday that Indonesia has large solar energy potential, reaching 3,300 gigawatts (GW) from the renewable energy potential of 3,600 GW.
However, Kaimuddin underscored the need for Indonesia to currently still build domestic solar panel factories and supply chains. Several investments are needed for Indonesia to achieve the solar energy production target of 4.7 GW by 2030.
"This is a big number, but we have not been able to build large-scale solar panel factories. Thus, we need to increase the overall demand for renewable energy," he remarked.
One of the steps taken by Indonesia is establishing strategic cooperation with Singapore in the development of the renewable energy manufacturing industry, such as solar panel production and battery energy storage system (BESS) for cross-border electricity trade.
This is expected to draw more investment into Indonesia's renewable energy sector, especially the solar panel industry.
The partnership is believed to proffer benefits to both parties. He noted that Singapore, with a bigger financial capacity, can accelerate efforts to reduce carbon emissions. Meanwhile, Indonesia can develop the domestic solar panel industry.
Singapore had earlier announced that it would increase its imports of low-carbon electricity from Indonesia from initially 2 GW to 3.4 GW to support future renewable energy needs.
Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated on the sidelines of the ISF 2024 in Jakarta on Thursday that Indonesia needs to build its domestic solar panel industry to be able to export green energy.
He affirmed that Indonesia will have a stronger position in the global energy market by utilizing its natural resource potential, especially its abundant silica, to make solar panels.
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Translator: Shofi Ayudiana, Raka Adji
Editor: Azis Kurmala
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