Berita Terkait

Selasa, 01 Oktober 2024

First US Solar Panel Manufacturer Breaks Ground in Batang Industrial Estate Valued at Rp 8 trillion

Batang, 30 September 2024 — Solar panel manufacturer SEG Solar Inc. becomes the first United States investor that breaks ground at Batang Integrated Industrial Estate (KITB). The company officially kicked off the investment for silica sand downstream development.

Representing the Minister of Investment/BKPM chairman, Deputy of Investment Promotion Nurul Ichwan stressed the importance of investment realization particularly for the ecosystem of solar panel industry to support the endeavor of attaining 42% renewable energy mix target in 2030.


“Renewable energy mix has so far only reached 14%,” he said at KITB, Central Java, on Monday (30/09/2024), who was accompanied by Interim Batang Regent, Co-Founder of SEG Solar Inc. as well as the Commissioner of PT SEG Solar Manufaktur Indonesia and KITB President Director.


Nurul Ichwan said the Ministry of Investment/BKPM supported the downstream investment for silica sand from PT SEG Solar Manufaktur Indonesia. That signals the government’s seriousness in implementing downstream programs to increase value added.


“Including strengthening Indonesia’s commitment to become a part of global supply chain and to reach Nationally Determined Contribution (NDC) target and renewable energy mix through the strengthening of the ecosystem of solar panel industry,” explained Nurul.


He added that, to support the endeavor of attracting high technology investment, Indonesia has to prepare good human capital so the country could enjoy the benefit of that investment through the absorption of local workforce.


Creating 2,000 jobs

Data from the Ministry of Investment/BKPM noted that this solar panel production plant would become SEG Solar’s largest of its kind in Southeast Asia which will support the global value chain with an investment plan of US$500 million or equal to Rp 8 trillion. This plant is projected to create 2,000 jobs within five years, with a land requirement of 40 Ha.


The plant’s construction is targeted to wrap in 2025 with a production capacity total of 5 Gigawatt, mainly for export to the US as well as to supply the domestic market.


This groundbreaking was a follow-up from the signing of pre-partnership agreement between SEG Solar Inc., PT ATW Solar Manufaktur Indonesia and KITB on June 23, 2023, in Washington DC, which was witnessed by Minister of Investment/BKPM chairman Rosan Roeslani, who was the Indonesian Ambassador for the US at the time.


Comprehensive Bilateral Relationship

Indonesia and the US have strong commitment to intensify the comprehensive bilateral relationship, including in investment. US investments have seen a relatively significant increase with a post-pandemic annual growth average of 2.3 times bigger than its annual growth during the pandemic.


In 2023, US companies have ramped up investment to US$3.3 billion with a relatively stable growth since 2021. In the first half of 2024, US was the fourth largest source of foreign direct investment (FDI) with a value of US$2 billion or 60% of the preceding year’s total investment.


“The production of solar panels is hoped to contribute to the increasing need of national electricity consumption that is projected to rise by an average of 4.1% every year in the next 10 years. This increasing consumption is pushed by the high demand from individual customers and the lush industry development. This silica sand downstream project is also hoped to play an important role in the development of potential renewables in Indonesia,” Nurul Ichwan concluded.


Powered by sagara 2022