AESI Is Promoting The Independence Of The Solar Energy Supply Chain In Southeast Asia

The Indonesian Solar Energy Association (AESI) is actively promoting the realization of supply chain independence for the solar energy industry in the Southeast Asian region.

Arya Rezavidi, the Vice Chairman of the Expert Council for Research and Technology at AESI, stated in Jakarta on Thursday that ASEAN member countries possess the necessary capital, such as a large market and abundant raw material sources.

According to Arya, there is already an agreement among solar energy associations from ASEAN member countries to integrate the entire supply chain of the solar industry in the region.

"We have reached an agreement among the associations in ASEAN to unite into one large market, and we aim to ensure that the entire supply chain of this solar industry is present in ASEAN," Arya remarked.

"Everything is available; we just need to exchange resources, utilizing what is available in Malaysia, what is in the Philippines, and what is in Indonesia, essentially filling in for each other," he added.

According to him, through the concept of mutual support among member countries, a strong and independent "one single market" in solar energy production and distribution can be realized.

Furthermore, Arya stated that the solar energy industry in Indonesia is continuously growing, evidenced by the emergence of numerous new companies and a significant increase in production capacity over the past few years.

Arya pointed out that this growth is reflected in the many new companies that have emerged and become members of AESI.

Additionally, growth can also be observed in the component industry, particularly in domestic solar modules. Over the last three years, the production capacity of local solar modules has surged dramatically. Initially, it was only about 600 megawatts (MW) per year from AESI members, but recent studies indicate that production capacity has now reached no less than 12 gigawatts (GW) per year.

"This is due to the emergence of several small industries here, and their capacities are not insignificant, 1 GW, 2 GW. So, in my opinion, this will represent a very large potential," he added.

However, Arya believes that Indonesia still needs to strengthen the quality of its human resources (HR) to support the rapidly growing solar industry.

Moreover, in the Electricity Supply Business Plan (RUPTL) 2025-2034 released last month, solar energy is projected to become the backbone of the energy transition due to its largest share in the new renewable energy mix, amounting to 17.1 GW – the highest compared to other renewable energy sources.

Tag: AESI ASEAN Southeast Asia