Chinese solar module manufacturer Longi and Pertamina New & Renewable Energy (Pertamina NRE), a unit of state-owned utility Pertamina, are planning a 1.4 GW solar cell and module factory in Indonesia.

The new manufacturing facility will be located in Deltamas, an integrated industrial, commercial and residential township in Cikarang, West Java, Indonesia, which is described by the two companies as a strategic area that facilitates distribution and supply chains.

“This initiative supports the Indonesian Government's commitment to fulfilling the Domestic Component Level (TKDN) and aims to meet the increasing demand for domestic solar PV modules,” Pertamina said in a statement.

According to Pertamina, which cites data from the Ministry of Industry, the current domestic solar panel production capacity in Indonesia is 1.6 GW per year. “Our new factory will increase national production capacity to 3 GW so that it can later support the government's target of 300-400 GW in 2060,” it stated, without providing further details.

In mid-June, Indonesia and Singapore agreed to build a solar panel industry in the Riau Islands. The agreement includes plans to develop an integrated green industrial zone in the Indonesian province to support cross-border clean energy trading between the two countries. The zone will be located in the regency of Karimun and on the island of Bintan, both near Singapore.

Earlier in May, SEG Solar, a US-based PV module manufacturer, commissioned a solar cell factory in Indonesia and produced its first n-type cell at the facility. The intent is for the factory to expand to an annual capacity of 5 GW with SEG Solar aiming to develop a fully vertically integrated industrial chain in Indonesia covering silicon rods, wafers, solar cells, and modules.