In order to protect the development of its domestic new energy industry, Indonesia has introduced a series of trade protection policies in recent years, particularly imposing strict requirements on the origin of photovoltaic modules. However, recent adjustments have been made to these policies.
Related Indonesian New Policies
According to the latest reports from relevant media, the Indonesian government recently announced a significant relaxation of foreign investment restrictions in the photovoltaic industry. The new policy stipulates that the local content requirement for solar power plant projects constructed in Indonesia will be drastically reduced from the previous approximately 40% to 20%. "Local content" includes locally produced materials, equipment, or labor, among other aspects.
This adjustment means that solar power projects can now procure more imported products, particularly key equipment such as high-efficiency solar panels and inverters. This move provides greater opportunities for foreign companies to enter the Indonesian market while also reducing project operating costs. It is excellent news for both the international market development of photovoltaic products and Indonesia itself. Additionally, Indonesia has relaxed restrictions on the import of solar modules. The new policy allows solar power projects to import equipment before June 2025, provided that project operators obtain ministerial approval, sign power purchase agreements by the end of 2024, and ensure that the power plants can commence operations by the first half of 2026.
From this, it is evident that the core objective of Indonesia's series of policy adjustments is to accelerate the deployment of renewable energy projects, particularly in the solar energy sector. The Indonesian government aims to attract more foreign companies to enter this market by lowering entry barriers, rapidly increasing renewable energy installed capacity, and achieving the targets set in the Comprehensive Investment and Policy Plan (CIPP) for 2030, 2040, and 2050.
Indonesia's Grand Vision for Photovoltaics
According to Indonesia's Comprehensive Investment and Policy Plan, the country aims to increase the installed capacity of renewable energy to 44% of the total by 2030, further raising this proportion to 75% by 2040 and 90% by 2050. By 2030, the installed capacity of variable renewable energy, primarily solar and wind power, will increase from the current less than 1% to 14%, reaching 25% and 36% by 2040 and 2050, respectively.
Under Indonesia's plan, renewable energy will account for 60% of new power generation by 2040. However, to achieve this, the installed capacity of solar power must reach 29 GW by 2030, while wind power projects must reach 8 GW. Given Indonesia's current installed capacity of solar and wind power, there is still a gap of at least 35 GW, indicating enormous investment demand and market potential in the Indonesian market.
According to analysis, the cost of large-scale ground-mounted solar projects in Indonesia has decreased from approximately $2.6/MW in 2013 to $0.8/MW in 2024, placing it within the global solar cost range ($0.5 to $1.8/MW).
According to the latest news, the harga solar panel 1000 watt in Indonesia are as follows:
The overall average price of TOPCon modules is USD 90 per 1000 watt.
HJT modules are priced at USD 90 to USD 110 per 1000 watt.
PERC modules are priced at USD 65 to USD 80 per 1000 watt.
Finally, the Indonesian government released a draft of the Comprehensive Investment and Policy Plan last year. Based on the estimated amount of sunlight the country receives, Indonesia has the potential to install 3.3 TW of solar capacity, the highest among all renewable energy sources, while offshore wind power ranks second with a potential of 94.2 GW.