The government will remove the requirement that solar projects use a majority of domestically produced materials until 2025, when Indonesia’s first solar panel factory is expected to begin production. By conservative estimates, the equatorial country could generate more than 4,000 times its current solar output.
Bloomberg reviewed a copy of the plan, which was written by the JETP Secretariat, the coordinating body for stakeholders hosted in Indonesia’s Ministry of Energy and Natural Resources and supported by the Asian Development Bank. Dadan Kusdiana, the energy ministry’s secretary general, confirmed that the government is in discussions to relax the rules for solar power projects.
For Indonesia’s part, changing the solar requirements may be the easiest of the legal reforms that the plan calls for. The country currently generates less solar power than Norway, and much of what it does produce is shipped to neighboring Singapore. The government would like to increase its solar power capacity fivefold in the next five years, according to the investment plan, but will need nearly $2.4 billion to do so.
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