Solar manufacturing mounts in Indonesia, yet deployment remains ‘underutilised’, says report

Facebook
Twitter
LinkedIn
Reddit
Email
Indonies currently has the potential to produce 19GW of solar PV modules per year. Image: Sembcorp via LinkedIn

Indonesian energy policy think tank, the Institute for Essential Services Reform (IESR), has penned a new report stating that the country stands to gain from the influx of new solar manufacturing capabilities yet it is still underutilising its generation potential.

According to the report ‘Indonesia Energy Transition Outlook 2025’, foreign investment in the country’s manufacturing capabilities will enable Indonesia to add 200,000 tonnes of polysilicon, 11GW of wafers, 17GW of cells, and 19GW of modules annually.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

This increase in investment is fuelled by strategic initiatives, such as the Indonesia-Singapore Green Corridor project, which focuses on expanding domestic manufacturing capacity. Furthermore, access to export markets is a significant incentive, especially in light of the trade tensions between China and Western countries, heightened by Donald Trump’s recent victory in the US election.

Several well-known solar PV manufacturers have entered the Indonesian market owing to the substantial financial growth the country is expected to experience by 2050. Indeed, according to global accounting giant PwC, Indonesia will become the world’s fourth-largest economy by 2050.

US-based solar manufacturer Thornova Solar recently started producing solar modules for the US market at a plant in Indonesia. The new module production line has a 2.5GW nameplate capacity and can produce both PERC and n-type technologies.

In late September 2024, solar manufacturer SEG Solar started construction on a vertically integrated 5GW ingot-to-module TOPCon solar PV plant in the central Java province. Construction started less than six months after the company unveiled its plan to build the plant in May 2024.

SEG Solar expects to complete the first phase of the site by Q2 2025. No additional timeline has been disclosed for subsequent phases.

Alongside SEG Solar, Singapore-headquartered PV manufacturer Gstar recently started construction on a 3GW silicon wafer plant located in Jakarta. The plant is expected to start production by the end of 2024.

Indonesia underutilising its solar PV generation potential

Despite the potential of its manufacturing capabilities, Indonesia is still behind in deploying the renewable energy generation technology.

The IESR’s report indicates that the country is currently underutilising its solar energy potential. With an average solar irradiance exceeding 4.8kWh per square meter per day and abundant sunshine throughout the year, Indonesia has the capability to generate between 7.7 to 20TW of solar power.

The report states that realising this potential will require Indonesia to pursue targeted policies, robust investment, innovation and international collaboration.

When the country reached the 700MW milestone, the IESR deemed the country’s rollout of solar PV “inadequate” to comply with the global climate target.

A previous report released by the think tank showed that Indonesia’s installed solar PV capacity reached 717.71MW in August 2024. Interestingly, the 145MW Cirata floating solar PV project, installed in November 2023, almost tripled on-grid solar PV capacity that year.

It is worth noting that Indonesia has around 17GW of solar PV projects in its development pipeline. Indonesian state utility PLN will also develop around 3.2GW of solar PV by 2030.

As reported by PV Tech earlier this month, PV will form the cornerstone of Indonesia’s renewable power sector as the government looks to phase coal-fired electricity out of the energy mix by 2040, according to Ember Climate. This came after the government installed a target to reach 75GW of renewable energy generation by 2040.

Read Next

June 10, 2025
Australia’s Queensland government has confirmed an AU$2.4 billion investment in the CopperString transmission project, aiming to extend the National Electricity Market (NEM) to the North West Minerals Province.
Premium
June 9, 2025
N-type polysilicon prices have dropped to RMB34,000/ton as the project installation rush ends, putting cost pressure on the industrial chain.
June 9, 2025
Sonnedix has signed a power purchase agreement (PPA) with Renfe to supply 420GWh of renewable energy annually for its commercial operations.
June 9, 2025
Saatvik Solar, a unit of Saatvik Green Energy Limited (SGEL), is building a 4.8GW solar cell and 4GW module manufacturing facility in Ganjam district of Odisha.
June 9, 2025
Growing political headwinds threaten to dent US solar manufacturing and project deployment, despite a strong start to 2025.
June 6, 2025
rPlus Energies has secured more than US$500 million for an 800MW solar-plus-storage project in Emery County, Utah, US.  

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece