How Trump's Tariffs Could Boost Indonesia's Solar Panel Market
How Trump’s Tariffs Could Boost Indonesia’s Solar Panel Market
Reporter
September 30, 2026 | 04:05 pm
TEMPO.CO, Jakarta - The Indonesian government assesses that the additional import duty of up to 114 percent imposed by the United States (Trump’s tariff) on solar panel products opens opportunities to increase absorption in the domestic market. Elen Setiadi, Deputy for Coordination of Energy and Mineral Resources at the Coordinating Ministry for Economic Affairs, said this condition presents an opportunity to strengthen the domestic solar panel market.
“Our industry for solar panels was previously exporting to America. However, some time ago, due to the imposition of an additional tariff of up to 114 percent, this opportunity can actually be absorbed in the domestic market,” Elen stated, as quoted from Antara, Wednesday, September 30, 2026.
According to Elen, the national solar module industry has developed a production capacity of around 11 gigawatts (GW) per year. This capacity can accelerate solar power plant development, including a 100-gigawatt (GW) solar power plant program.
The 100 GW solar power plant program could generate up to 5.5 million green jobs, reduce CO2 emissions by approximately 140 million tons, and save up to Rp74 trillion per year.
She said developing solar power plants needs to go hand in hand with strengthening the national solar panel industry. It aims to increase generating capacity and create added domestic value.
Currently, the Coordinating Ministry for Economic Affairs recorded 34 domestic solar module manufacturers with an annual production capacity of 10,994 megawatts peak (MWp). The maximum capacity of the modules that can be produced reaches about 720 watts peak (Wp) per module, with an average domestic component level (TKDN) of around 40-55 percent.
However, the industry still faces several challenges. These include the low realization of solar power plant projects and the fact that the minimum TKDN requirement for solar power plants still allows for the use of imported solar modules. Additionally, the government acknowledges that rooftop solar quotas remain limited and have not accommodated all requests from the industrial sector for rooftop solar panel use.
Elen believes strengthening the domestic market should also be accompanied by supply chain development to reduce dependence on global markets, especially for raw materials such as wafers and ingots. The government proposes non-fiscal incentives to encourage the use of domestic solar modules.
Incentives include providing larger rooftop solar quotas for users of local products. “If the 100 GW target can be achieved, our industry can actually be developed. Currently, the potential is already 11 GW,” she added.
Additionally, the government encourages partnerships between local and global companies to support investment, technology transfer, and strengthening the supply chain of the national solar panel industry.
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