Chinese investments poised to transform Indonesia's solar industry

While other Southeast Asian countries grapple with the effects of new U.S. trade restrictions, Jakarta is welcoming Chinese solar investments and pushing fast-tracked reforms to become the region's next solar powerhouse.

In an exclusive interview with China Global Television Network (CGTN), Putra Adhiguna, managing director of Energy Shift Institute, praised the move, noting that Chinese investment can accelerate Indonesia's solar transition. However, he emphasized that the country must also build its own capacity to develop solar energy independently in the future.

"China is a natural partner for solar production because they're the leader in technology, capital deployment, and everything else, which means that (for) Indonesia, as a big country in Southeast Asia, the natural partner is actually China. So it's a step in the right direction because if Indonesia is going to grow a lot of renewables, it needs domestic solar panels. It cannot only rely on solar panels imported from China alone," he said.

Over the past 18 months, at least four solar projects linked to Chinese companies have begun operations in Indonesia.

The Indonesian government says it is now focused on creating a business-friendly environment to accelerate the country's transition to clean energy.

As part of these efforts, the government has reduced the local material requirement from 40 percent to just 20 percent, opening the door for more foreign investment.

"We have a commitment that we will increase the percentage of new and renewable energy to support Indonesia's economic growth up to 70 percent. So, we translate it into different (multiple) strategies. One of the strategies is to invite investment. Why this is important? Because Indonesia realizes that Indonesia doesn't have the capacity yet to develop its own renewable energy," said Leonardo Adypurnama, deputy for food, natural resources, and environment at Indonesia's Ministry of National Development Planning.

Adypurnama said Chinese investment remains a crucial step in upgrading Indonesia's solar industry.

Until now, Indonesia's solar market has primarily relied on assembly facilities that use imported parts. This investment aims to change that by establishing factories capable of locally manufacturing and supplying solar panels.

However, the real challenge will be whether Indonesia can stimulate local demand while avoiding entanglement in the ongoing global trade battle.

Chinese investments poised to transform Indonesia's solar industry

Chinese experts in mainland-Taiwan relations on Tuesday strongly criticized Lai Ching-te and the Democratic Progressive Party he leads for intentionally stirring up trouble across the Taiwan Strait and blocking exchanges between people on the two sides of the Strait.

Their denunciation came at an event held in Beijing marking the launch of the 2024 edition of a handbook on the Taiwan question, which is compiled by Taiwan Work Office of the Communist Party of China (CPC) Central Committee and the Taiwan Affairs Office of the State Council.

At a press conference on March 13, Lai unveiled 17 strategies to counter so-called "threats" from the Chinese mainland facing the island, which has sparked strong concerns from people in various sectors of Taiwan.

Experts said Lai's move once again revealed the true nature of his Taiwan separatist attempts and his stance against cross-Strait communication and peace.

"All he [Lai Ching-te] wants is to stir up societal unrest to consolidate the Democratic Progressive Party's (DPP) rule and political interests. He seeks to incite extreme populism to mislead certain groups, especially the young people," said Zheng Jian, deputy director of the Research Committee of the China Council for the Promotion of Peaceful National Reunification.

"I believe that Lai's rhetoric is aimed at sowing discord between people on both sides of the Strait, obstructing cross-Strait exchanges, and inciting confrontation across the Strait. He seeks to create a climate of 'green terror' in Taiwan and cause a chilling effect among the Taiwan public. As a matter of fact, Lai's remarks have met the firm refute and opposition of many people in Taiwan. We must recognize that people on both sides of the Strait belong to one family and share the bond of kinship. I believe that our compatriots in Taiwan, inspired by the strong sense of community for the Chinese nation, will work together to promote common development across the Strait and contribute to the great rejuvenation of the Chinese nation," said Yang Yizhou, vice chairman of the All-China Federation of Taiwan Compatriots.

Experts condemn Lai Ching-te’s separatist rhetoric, stress cross-Strait unity