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Requirements for Singapore to Import Electricity From Indonesia: Solar Panel and Battery Developers Must Build Factories in Indonesia

Jakarta

The Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) has revealed the requirements for Singapore if it wants to import electricity From Indonesia. The main condition is that solar panel and battery developers from Singapore must build factories in Indonesia.

“Essentially, what we require is that everything is made in Indonesia. So solar panels and batteries are made in Indonesia if you want to export them. What we are encouraging is for developers to build solar farms and make battery storage and make networks in Indonesia,” said Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Fisheries, Rachmat Kaimuddin. after the closing of the 2023 Indonesia Sustainability Forum (ISF) at the Park Hyatt Hotel, Central Jakarta, Friday (8/9/2023).

In the agreement signed between the governments of Indonesia and Singapore, it is stated that all equipment used to produce low-carbon electricity requested by Singapore must meet the 60% domestic component level (TKDN).

“The requirement that we made in the G-to-G MOU between Indonesia and Singapore is that solar panels must meet Indonesia’s TKDN Requirements. For example, 60% TKDN must be implemented in the Indonesian factory, later the factory can be anywhere in Batam, Java,” said Rachmat .

In general, it is considered that this requirement will form the solar panel industry itself in Indonesia. It is hoped that large investments will enter the country in the development of low-carbon electricity.

With a developed solar panel industry, Rachmat said Indonesia will benefit because the need for solar panels can be met directly within the country.

“Yesterday it was also reported that PLN also intends to increase the use of solar panels so that the industry can be formed and benefit us,” said Rachmat.

When asked when this electricity export could be realized, Rachmat said it could be 2026 at the latest. “If it starts, maybe 2026 or 2027,” he concluded.

Previously, Deputy Minister of Trade and Industry Tan See Leng said Singapore’s energy authorities had approved the import of 2 gigawatts of low-carbon electricity from Indonesia to Singapore.

“I am pleased to announce that the EMA (Energy Market Authority Singapore) has given conditional approval to import 2 gigawatts of low-carbon electricity from Indonesia to Singapore,” explained Tan See Leng at the same event.

There are around five companies from Indonesia that have submitted proposals to provide low-carbon electricity to the Lion country. Firstly, three companies are members of the Pacific Medco Solar Energy consortium, secondly Adaro Green, and also TBS Energi Utama.

Tan See Leng explained that collectively, these companies will install around 11 gigawatts of solar panel capacity and 21 gigawatts of battery energy storage in Indonesia.

“These projects will be the largest solar and battery power plants in Indonesia and will serve the energy needs of Indonesia and Singapore,” said Tan See Leng.

(aid/hns)

2023-09-08 13:42:42
#Singapore #Fulfill #Local #Components #Buy #Electricity

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