With red tape, canceled rebates, Indonesia risks missing Chinese renewables investment

Mongabay
Mongabay
2M ago
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Indonesia's strict quotas on rooftop solar installations may hinder its ability to attract significant Chinese renewable energy investments, despite the country's vast potential.
With red tape, canceled rebates, Indonesia risks missing Chinese renewables investment
A What happened
Indonesia is at a crossroads in its renewable energy journey, with Chinese firms like LONGi and Trina Solar investing significantly in solar panel manufacturing. Despite pledges of around $70 billion in investments since 2022, the country's strict quotas on rooftop solar installations, set by state-owned utility PLN, dampen investor enthusiasm. Currently, Indonesia has only 560 MW of solar capacity, a stark contrast to China's 198 GW added in just the first five months of 2025. The potential for growth is immense, as evidenced by the establishment of factories by Chinese firms, yet bureaucratic red tape and the cancellation of rebates threaten to undermine these opportunities. Experts warn that failing to address these issues could result in Indonesia missing a rare chance to build a robust domestic clean energy supply chain.
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Key insights

  • 1

    Investment Opportunities: Indonesia has a rare chance to attract significant Chinese renewable investments.

  • 2

    Bureaucratic Challenges: Strict quotas and red tape hinder the growth of Indonesia's renewable energy sector.

  • 3

    Potential for Growth: Indonesia's renewable energy market remains largely untapped, presenting significant opportunities.

Takeaways

Addressing regulatory challenges is crucial for Indonesia to fully capitalize on Chinese investments in renewable energy.

Topics

Health & Medicine Public Health Climate & Environment Sustainability Energy World & Politics Governance Corruption & Accountability