APAMSI: Indonesia’s Solar Manufacturing Capacity Reaches 10.9 GW, Demand Remains the Bottleneck

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Ecobiz.asia – Indonesia has 34 operating solar module factories with combined annual production capacity of 10.9 GW, but manufacturers are facing a demand gap that risks leaving a significant portion of the capacity underutilized.

Around 4.3 GW of the manufacturing capacity is geared toward exports, while domestic manufacturers remain dependent on a clearer project pipeline, predictable procurement and stronger domestic demand, according to the Indonesian Solar Module Manufacturers Association (APAMSI).

APAMSI Chairman I Made Sandika Dwiantara presented the figures during Indonesia Sustainable Energy Week (ISEW) 2026 in Jakarta on Wednesday (August 19, 2026).

APAMSI estimates Indonesia’s solar market could grow by around 1.5 GW to 1.9 GW annually between 2025 and 2034, significantly below the country’s existing module manufacturing capacity.

Indonesia had around 1.37 GW of installed solar capacity as of October 2025, comprising 749.18 MWp of rooftop solar, 426.90 MWp of large-scale solar projects and 194.27 MWp of floating solar.

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The government’s 2025–2034 Electricity Supply Business Plan (RUPTL) is expected to provide additional demand, although solar capacity additions will be phased over time. APAMSI’s presentation shows planned solar additions averaging around 1.52 GW annually in 2025–2029, rising to about 1.9 GW annually in 2030–2034, with the largest annual addition of 3.87 GW projected for 2033.

For manufacturers, APAMSI said the issue is therefore no longer simply production capacity, but whether sufficient demand can be generated to utilize existing factories.

The association is calling for greater visibility on future solar demand, a clear project pipeline, predictable procurement volumes and schedules, and certainty that domestically manufactured products will be absorbed by projects.

APAMSI’s 21 members alone have 5.9 GWp per year of solar module manufacturing capacity and 14.3 GWp per year of solar cell manufacturing capacity, employing 2,572 workers. Available technologies include P-Type, N-Type, TOPCon and back-contact products.

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The association also sees potential economic benefits from expanding domestic manufacturing. APAMSI estimates that each 1 GW of solar equipment produced domestically could generate around US$68 million (Rp1.21 trillion) in annual economic impact and support more than 5,500 jobs.

Of that estimated impact, around US$48 million (Rp856.5 billion) would come from spending on domestic manufacturers, suppliers, small businesses and labor, while another US$20 million (Rp356.9 billion) could accrue to the government through taxes, duties and other state and regional revenues.

APAMSI estimates that domestic production could generate an economic impact up to 10.5 times greater than relying on imported products, although the association did not provide the underlying calculation for the comparison in its presentation.

The association said higher utilization of domestic factories could generate economies of scale, improve production costs and strengthen the local supply chain, potentially enabling Indonesian manufacturers to compete in regional export markets.

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However, gaps remain further upstream. Domestic manufacturing capacity is still limited for key materials and components such as polysilicon, ingots, wafers and low-iron tempered glass, leaving manufacturers dependent on imported inputs.

APAMSI is calling for local-content policies to be aligned with the readiness of the domestic supply chain rather than increasing requirements ahead of available industrial capacity.

The association also wants greater investment in manufacturing upgrades, automation and production efficiency to help Indonesian suppliers compete on price, quality, technology and reliability.

APAMSI said the immediate priority is to ensure that Indonesia’s growing solar project pipeline translates into actual demand for domestic manufacturing, while stronger factory utilization could eventually help establish Indonesia as a more competitive solar equipment producer in the regional market. ***

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