Will solar PV fuel Indonesia's energy transition?

The emergence of solar PV in fueling Indonesia’s energy transition ISEO 2023 provides an update on the progress of solar PV as the primary energy source in Indonesia’s energy transition, as well as its challenges and market opportunities.

How can Indonesia build a robust solar PV manufacturing sector?

One of the primary requirements in building a robust solar PV manufacturing sector is attracting substantial investments. To achieve this, Indonesia may consider incentives to entice foreign and domestic investors. These could include: Grants for plant development.

Does Indonesia have solar PV?

Solar PV has not scaled as fast in Indonesia as in some of its regional peers. In 2022, the country had 0.3 GW of installed capacity—low compared to the 3.1 GW and 18.5 GW of Thailand and Vietnam, respectively (Exhibit 2).

How can Indonesia create a national PV market?

In the future, the Government of Indonesia should pay more attention to creating national PV market by stimulating academicians and businesses to collaborate in yielding new PV technologies, because RIS and SIS exist due to cooperation and competition across regions/countries.

Could Indonesia seize the opportunity of new demand streams for solar PV?

Vishal Agarwal is a senior partner in McKinsey’s Singapore office; Karambir Anand is an associate partner in the Jakarta office, where Bayu Purba is a consultant; and Enrico Furnari is a consultant in the Kuala Lumpur office. Indonesia could seize the opportunity of new demand streams for solar PV by learning from other Southeast Asian countries.

Will Indonesia invest more in solar energy?

Indonesia to Invest More in Solar Energy Public trust in renewable energy is building up along with the number of clean energy-producing products available on the market. One these products is rooftop photovoltaic (PV) system.