Batam, gokepri – Indonesian government plans to partner with the Singapore government in developing the domestic solar panel industry, with an estimated investment potential of USD50 billion.
During the Indonesia Leading Economic Forum 2023 “Strengthening the Economic Climate Amid the Global Polycrisis Era” in Jakarta on Tuesday, March 15, 2023, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan explained that the cooperation will follow the “end-to-end” principle. This means that Indonesia will build the entire production chain of solar panels, from the manufacturing of the panels to the batteries and other components, before exporting them to Singapore.
“At present, Singapore wants to import electricity from Indonesia. However, we want to develop the solar panel industry in our country. So, we must build the entire production chain in Indonesia before we can export to Singapore. This will be a win-win solution for both countries,” said Luhut.
The collaboration will also support the development of the Kalimantan Industrial Park Indonesia (KIPI) in North Kalimantan. In this industrial zone, the Indonesian government has just inaugurated the laying of the first stone for the Mentarang Hydropower Plant (PLTA), with a projected capacity of 1,375 Megawatts (MW).
Additionally, the Kaltara industrial zone will also host the largest petrochemical plant, iron and steel factory, electronic alumina factory, as well as electric battery and solar panel factories. Luhut added that this project will be an “end-to-end” project that has the potential to reach USD50 billion in investment.
This collaboration is expected to strengthen Indonesia’s economy and create new job opportunities for the Indonesian people. Moreover, Indonesia will become the largest solar panel production center in Southeast Asia.
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