Indonesia's Solar Panel Industry Pressured by US Tariffs, Government Strengthens Domestic Market

JAKARTA, KOMPAS.com - The Ministry of Energy and Mineral Resources (ESDM) is responding to the United States’ policy of imposing high tariffs on solar panels originating from Indonesia. The import duty tariffs range from 86 per cent to 143.3 per cent. Deputy Minister of ESDM Yuliot Tanjung stated that the government is calculating the impact, particularly on the affected export volumes. “So we are also looking at the volume exported to America, and how much of that volume is subject to the tariffs,” he said at the Ministry of ESDM in Jakarta on Friday (24/4/2026). The government is preparing anticipatory measures by strengthening the domestic market. One of the main focuses is accelerating the construction of solar power plants. “The directive from the President is to also accelerate the 100 gigawatt PLTS for domestic needs. So this will balance it out,” he said. The initial phase is directed towards building PLTS with a capacity of 17 gigawatts. The planned locations and projects are still being prepared by the Directorate General of New, Renewable Energy, and Energy Conservation. That capacity will be increased gradually until reaching the 100 gigawatt target. “So this is done with priority on the 17 gigawatts first, then gradually fulfilled up to 100 gigawatts,” he added. Indonesian products are deemed to be sold below fair value in the US market. The tariffs are set differently for each company. PT REC Solar Energy is subject to a tariff of 85.99 per cent. PT Blue Sky Solar faces 143.3 per cent. Other exporters are subject to 104.38 per cent.