SEG Solar Inc., a US-based solar panel manufacturer, has started construction in the Batang Integrated Industrial Park (KITB), Central Java, marking a significant investment in silica sand downstream processing. According to the Investment Promotion Deputy at Indonesia's Investment Coordinating Board (BKPM), Nurul Ichwan, the government aims to boost renewable energy efforts, targeting 42% by 2030, as current renewable energy usage is around 14%. The project highlights Indonesia’s commitment to strengthening its solar panel industry and supporting the global supply chain, helping the country reach its Nationally Determined Contribution (NDC) targets.
The investment, totaling USD 500 million (IDR 8 trillion), is set to create 2,000 jobs over the next five years. The solar panel factory, occupying 40 hectares, is projected to produce 5 gigawatts and is expected to be completed by 2025. Nurul noted that the US has shown increased investment in Indonesia, with an annual post-pandemic growth rate 2.3 times higher than during the pandemic. In 2024, the US ranked fourth in foreign direct investment, contributing USD 2 billion, a 60% increase from the previous year. The growing demand for electricity, estimated to increase by 4.1% annually, will benefit from this production.
