Antara News·Indonesia·Wednesday, September 30, 2026 at 12:12 PM

Govt sees 114 pct US tariff potential to boost solar panel market

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Shofi Ayudiana, Resinta Sulistiyandari

Jakarta (ANTARA) - The Indonesian government views the US tariffs of up to 114 percent on Indonesian solar panel products as an opportunity to strengthen domestic demand and encourage local production.

Elen Setiadi, Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs, said the situation presents an opportunity to strengthen the domestic solar panel market.

"We previously exported our solar panels to the United States. However, due to the imposition of additional import duties of up to 114 percent, we can actually make use of this potential and opportunity domestically," Setiadi noted on Wednesday.

He conveyed that the national solar module industry has now grown to a production capacity of around 11 gigawatts (GW) per year. This capacity can be utilized to support the accelerated development of solar power plants (PLTS), including the 100-gigawatt (GW) program.

Setiadi informed that the 100 GW solar power plant (PLTS) program is projected to potentially create 5.5 million green jobs, reduce emissions by approximately 140 million tons of CO2, and generate savings of up to approximately Rp74 trillion (US$4 billion) per year.

He then pointed out the need to develop solar power plants (PLTS) alongside the strengthening of the national solar panel industry, ensuring that increased generating capacity also creates added value domestically.

Currently, the Coordinating Ministry for Economic Affairs reports 34 domestic solar module manufacturers with a combined annual production capacity of 10,994 megawatt peak (MWp).

The maximum module production capacity is around 720 watt peak (Wp) per module, with an average domestic component level (TKDN) of 40-55 percent.

However, the industry still faces several challenges, including limited solar power plant project implementation and minimum TKDN requirements that still allow the use of imported solar modules.

The government also notes that rooftop solar power plant (PLTS) quotas remain limited, while applications from the industrial sector have yet to be fully accommodated.

Setiadi also said that strengthening the domestic market should be accompanied by supply chain development to reduce reliance on global markets, particularly for raw materials such as wafers and ingots.

The government is proposing non-fiscal incentives to promote the use of locally produced solar modules, including allocating larger rooftop solar power plant quotas to users of domestic products.

“If our target of 100 GW is achieved, our industry will also be able to grow, while our current potential stands at 11 GW,” he remarked.

The government is also encouraging partnerships between local and global companies to attract investment, facilitate technology transfer, and strengthen the national solar panel supply chain, he said.

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