The Role of Government to Develop
Solar Energy Industry in Indonesia
Directorate General of
Metal, Machinery, Transportation, and Electronic Industry
Ministry of Industry
Jakarta, May 18, 2017
1
Master Plan of The National Industrial
Development (RIPIN)
Phase II Phase III
Phase I
(2020-2024) (2025-2035)
(2015-2019)
Excellence competitive Industrial Country
Increase the added value of
and environmentally
natural resources
friendly
Through the strengthening Strong and deep national
Focus on upstream industry
of industrial structure and industrial structure,
based on agro, minerals and
mastery of technology and highly competitive at
oil and gas, followed by
quality human resources global, innovation-based
supporting and leading
and technological level
industries through the
preparation of human
resources and improve the
technology
2
10 Industry Priority
Master Plan of The National Industrial Development
Food Industry Energy Generating
Industry
Industrial Goods Capital,
Pharmaceutical Components, Rescue
Industry, Cosmetics Materials and Industrial
and Medical Devices Services
Textile, Leather, Upstream Agro Industry
Footwear and
Multifarious Industries
Basic Metal and Non
Transportation Metal Metals Industry
Equipment Industry
Basic Chemical
Electronics and
Industry Based on Oil
Telematics Industry /
and Gas and Coal
ICT
3
New Renewable Energy Potency in Indonesia
RASIO Installed and
NO New Renewable Energy Potential Resources Installed National Capacity Potential (%)
1 2 3 4 5 = 4/3
1 Hydro 75.000 MW 8.111 MW 10,81 %
2 Geothermal 28.910 MW 1.403,5 MW 4,9 %
3 Biomassa 32.000 MW 1.740,4 MW 5,4 %
4 Solar Power 4,80 kWh/m2/day 71,02 MW -
5 Wind Power 3 – 6 m/s 3,07 MW -
6 Ocean Power 49 GW ***) 0.01 MW ****) -
7 Uranium 3.000 MW *) 30 MW **) -
*) in Kalan – West Borneo ***) Source: National Energy Board
**) Research, non-energi ****) Prototype BPPT
Source: Draf Rencana Induk Konservasi Energi Nasional (RIKEN) 2011
4
Bussiness
As Usual
450
Juta TOE TARGET 2025
PRIMARY ENERGY
400 CONSERVATION 11%
Juta TOE
290 EBT
Juta TOE
23%
EBT
215
17%
Juta TOE
NRE Coal
6% Coal 30%
Total of National Primary 29%
Coal
Energy 215 MTOE
29%
New and Renewable Energy
(NRE): 13 MTOE Natural Gas Natural Gas
Natural Gas 22% 22%
Geothermal: 6 MTOE 24%
BIOFUEL: 4 MTOE
BIOMASSA: 2 MTOE
Hydro: 1 MTOE Oil Oil
Oil
41% 32% 25%
2014 2020
2025
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The task of the Ministry of Industry related to
the General Plan of National Energy (RUEN)
1. Implementation of energy efficiency gradually in the industrial intensive energy
consume, large industries and SMEs
2. Mapping utilization of Renewable Energy (EBT)
3. Coal Gasification
4. Utilization of solar energy (non power) in industrial sector
5. Facilitate the establishment of material processing plants into Solar Panel components
6. Facilitate the research and development of solar cell products for implementation in the
industrial sector
7. Applying the energy management system and its optimization in the industry gradually
starting from intensive energy consume industry, large industry, priority industry and
SME
8. Restructuring of industrial machinery and providing incentives (fiscal and non-fiscal
facilities for industries that implement energy efficiency)
9. Promoting green industry standards based on the efficient use of raw materials,
energy, and water, and waste minimization
6
G
Background in the Development of
Photovoltaic Industry
1. In 2025, Government of Indonesia targeted share of renewable
energy is 23% of national demand of energy and develop 6.400 MW
of Solar power plant (5.000 MW is targeted in 2019);
2. Reduce Green House Gas (GHG) emission by 29% in 2030;
3. Promote utilization and achieving target of Solar Power Plant
development;
4. Increasing energy security and energy autonomy; and
5. Increasing growth of local industry.
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Photovoltaic Industry in Indonesia
Production
No. Company Location
Capacity
1 PT. Len Industri (Persero) Bandung 50 MWp
PT. Adyawinsa Electrical and
2 [Link]. Jababeka II 45 MWp
Power
3 PT. Surya Utama Putra Kabupaten Bandung 45 MWp
4 PT. Swadaya Prima Utama Kabupaten Karawang 50 MWp
5 PT. Azet Surya Lestari Bintaro Tangerang 30 MWp
6 PT. Wika Energi Intrade Jakarta 30 MWp
7 PT. Sankeindo Tangerang 45 MWp
8 PT. Sky Energy Indonesia Gunung Putri Bogor 100 MWp
9 PT. Canadian Solar Tangerang 60 MWp
10 PT. Jembo Energindo Tangerang 60 MWp
Total 515 MWp
Sumber : PT. Len Industri (Persero), APAMSI (2016)
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Solar Energy in Indonesia
Potential National Solar Power
Solar Energy Production Plant
in Indonesia Capacity of Capacity in
Annually Solar Indonesia
532,6 GWp Energy
515 MWp 25 MWp
Wide gap of supply and demand of solar
energy equipment
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Development of Solar Energy Industry with
Local Content Regulation
1. Regulation of the Minister of Industry number 04 / 2017 on Conditions and
Procedure of Local Content Calculation in Solar Power Plant
2. Regulation of the Minister of Industry number 05 / 2017 on amendment of
Regulation of the Minister of Industry number 54/M-IND/PER/3/2012 on
Guidelines for The Use of Domestic Product for Electricity Infrastructure
Development
3. Regulation of the Minister of Energy and Mineral Resource number 12/2017 on
Utilization of Renewable Energy in Electricity Supply
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Procedure of Local Content Calculation in
Solar Power Plant
[Link] Grid and local Solar Power Plant
[Link] Grid and Communal Solar Power Plant
[Link] Grid and Communal Solar power Plant
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Procedure of Local Content Calculation in Solar
Power Plant
1. Off Grid and local Solar Power Plant
No Item Local Content
1 Goods 39.87%
2 Service 100.00%
3 Overall Local Content 45.90%
Minimum Local Content of Goods:
Minimum Local
No Item of Goods
Content
1 Solar Module 40.00%
2 Battery 40.00%
3 Battery Control Unit 10.00%
4 Module Support 42.40%
5 Cable 90.00%
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Procedure of Local Content Calculation in Solar
Power Plant
2. Off Grid and Communal Solar Power Plant
No Item Local Content
1 Goods 37.47%
2 Service 100.00%
3 Overall Local Content 43.72%
Minimum Local Content of Goods:
Minimum Local
No Item of Goods
Content
1 Solar Module 40.00%
2 DC Combiner box 20.00%
3 Distribution panel 40.00%
4 Battery 40.00%
5 Cable 90.00%
6 Protection System 20.00%
7 Module Support 42.40%
8 Energy limiter 40.00%
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Procedure of Local Content Calculation in Solar
Power Plant
3. On Grid and Communal Solar power Plant
No Item Local Content
1 Goods 34.09%
2 Service 100.00%
3 Overall Local Content 40.68%
Minimum Local Content of Goods:
Minimum Local
No Item of Goods
Content
1 Solar Module 40.00%
2 DC Combiner box 20.00%
3 Distribution panel 40.00%
4 Transformer 40.00%
5 Cable 90.00%
6 Protection System 20.00%
7 Module Support 42.40%
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Regulation of the Minister of Energy and Mineral Resource
number 12/2017 on
Utilization of Renewable Energy in Electricity Supply
In the auction, the selection / appointment of Electric Power
Developer, PLN must prioritizes the Electric Power Developer that
comply with local content regulation
The local component used in power generation must comply with:
National Standard (SNI) for electricity
International standards or
Standards of other countries that do not conflict with International
Organization for Standardization (ISO) or International Electro
technical Commission (IEC) standards.
15
Obstacle of
Photovoltaic Industry Development
• Solar module market not yet developed commercially
– Limited utilization solar module product in household, commercial and industry.
– Market of solar module product only from government procurement.
• Electricity production price from solar panel is higher than others energy sources.
• Price of Electricity from various sources (in US$ Cent)
Solar water Geothermal Wind Coal
14.5-25 9-12 13-14 15-19 5-7
• The price of electricity generated from conventional sources is still subsidized, so
renewable energy still does not appeal to the user.
• Unavailability of laboratory tests of solar module product.
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Development Of Photovoltaic Industry as
New Renewable Energy (NRE)
• In order to improve the competitiveness of national industries, the Ministry
of Industry will continue to implement programs related to energy
efficiency and conservation, New Renewable Energy (NRE) development
as a source of energy, upgrading the ability of the company's staff in
Energy Management and monitoring and evaluation the implementation of
related policies
• Industrial companies need to keep pushing their tablespoons for energy
efficiency and innovation by applying reward mechanisms
• To encourage the exploitation and exploitation of New Renewable Energy
(NRE) in the industrial sector required policy certainty (eg an interesting
feed in tariff) and incentive support (production development facilities
supporting equipment New Renewable Energy (NRE) utilization
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DIREKTORAT JENDERAL INDUSTRI LOGAM MESIN ALAT TRANSPORTASI DAN ELEKTRONIKA
Kementerian Perindustrian
Jln. Gatot Subroto Kav. 52 – 53
Lantai 11 - 12, Jakarta
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