US solar power company, SEG Solar Inc. is collaborating with Indonesian company ATW Group with an investment of US$ 500 million (IDR 7.5 trillion) to build a solar panel and module manufacturing industry in the Batang Integrated Industrial Area (KITB), Central Java.
SEG Solar joint venture with ATW Group
The solar panel and solar module manufacturing facility will have a capacity of up to 5 Giga Watt (GW), as well as creating jobs for around 2,000 Indonesian workers.
Bahlil Lahadalia, Minister of Investment and Head of the Investment Coordinating Board (BKPM) said the agreement on the solar panel project was incorporated in the pre-cooperation agreement between the two US companies.
The signing was carried out by Jim Wood, CEO of SEG Solar Inc., and Antonius Weno, Founder of ATW Group and Victor Samuel, Director of AW Group for the construction of solar panels and modules at KITB.
“The signing of this cooperation is a form of effort from the Government of Indonesia to encourage the energy transition,” said Lahadalia, on June 24, 2023.
US investment may be hampered
This collaboration is also an initial process to establish openness with the US, which is currently issuing an Inflation Reduction Act (IRA) policy that can affect companies’ interest in investing in Indonesia and the global electric vehicle ecosystem.
The presence of the US to invest is the government’s effort to convince US investors to come invest.
“There should be no more perception that it’s as if we only focus on investment in certain countries,” said Lahadalia.
Rosan Perkasa Roeslani, Ambassador Extraordinary Plenipotentiary of the Republic of Indonesia to the United States said that multi-stakeholder meetings can bring about concrete agreements in the investment sector.
This action is supported by incentives from the United States Government to companies investing in partner countries (friendshoring). This agreement is expected to strengthen cooperation between the Government of Indonesia and the US Government.
“This collaboration, which will soon be realized next year, God willing, will not only contribute to economic growth. But also support the energy transition and also create jobs,” said Roeslani
Currently, the United States is ranked 6th as the largest investor in Indonesia valued at US$ 9.4 billion in the 2018-Q1 2023 period. With dominant sectors in mining, electricity, gas, water, chemicals, pharmaceuticals and food.
