The Indonesian Ministry of Energy and Mineral Resources (ESDM) reports a growing positive trend in investment commitments for the development of solar power (PLTS) in both upstream and downstream industries within the framework of clean electricity export cooperation to Singapore. Secretary-General of the ESDM Ministry, Dadan Kusdiana, states that three companies have recently shown a heightened commitment to investing in the entire PLTS industry for Singapore's export market. The potential market for electricity export to Singapore is estimated at 3.5 gigawatts (GW), equivalent to 17.5 GW of solar capacity if converted, considering effective electricity generation for 5 hours daily.
This cooperation was established through a memorandum of understanding (MoU) signed during the annual Leader's Retreat between Indonesia and Singapore on March 17, 2023. Under the MoU, Singapore seeks a clean electricity supply from Indonesia for its energy mix plan until 2035. In return, Indonesia requires that electricity exports hinge on establishing a domestic solar panel industry, including upstream and downstream aspects, along with supporting components like battery energy storage systems (BESS).
The formation of the Indonesia Solar Panel Industry & Renewable Alliance (Inspira), consisting of national companies such as PT Adaro Power, Medco Power, and Energi Baru TBS, has facilitated collaborations to build a solar panel supply chain and industrialization with international partners. However, the extent of domestic production, particularly for solar cells, remains uncertain. Additionally, President Joko Widodo secured a USD 11.5 billion investment commitment from China's Xinyi International Investment Limited for an integrated glass and solar panel industry in Indonesia, aimed at boosting silica sand and quartz downstream products for solar panels. This comes after Xinyi's prior USD 700 million investment in the Gresik Industrial Estate.
