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Indonesia’s solar panel industry faces challenges amid COVID-19

Demand for commercial photovoltaic (PV) panels in Indonesia was down up to 70 percent in the March-April period as the country’s government cut back electrification projects and businesses aborted installation plans.
Indonesia’s solar panel industry faces challenges amid COVID-19 ảnh 1A worker inspects the 600 kWp solar power plant on Gili Trawangan Island in Lombok, West Nusa Tenggara (Photo: )

Jakarta (VNA) - Demand for commercial photovoltaic (PV) panels inIndonesia was down up to 70 percent in the March-April period as the country’sgovernment cut back electrification projects and businesses abortedinstallation plans.

According to a recent survey conducted by energy think tank Institute forEssential Services Reform (IESR), demand for PV systems in resident areas droppedby up to 100 percent compared to the same period last year.

Speaking at a recent virtual press conference, IESR executive director FabbyTumiwa said the outlook over the next six months will be largely negative withno new orders.

The challenges faced by Indonesia’s solar power industry are similar to thoseacross developing renewable markets in Asia.

The Indonesian government announced in late March a plan to reallocate 62.3trillion Rp (4.15 billion USD) from the state budget to tackle the COVID-19pandemic. The freed funds would focus on health care, the disbursement ofrelief funds and financial incentives for enterprises.

Local producers imported 40 percent of the materials used to produce solar PVpanels. Domestically produced solar PV costs rose between 15 and 20 percent perunit in the March-April period.

Hariyanto, an official from the Indonesian Energy and Mineral ResourcesMinistry, confirmed that the government was slashing state-funded renewableenergy project targets but not cancelling them entirely.

The ministry had revised down its target for government-funded solar rooftopinstallations from 800 units to 144 units and for solar-powered streetlampsfrom 40,000 to 26,000, he said./. 
VNA

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