Indonesia has plans to establish a USD 4 billion polysilicon industry amid efforts to boost the production of solar panels. Polysilicon is a vital material for solar panels, and prices soared to a 10-year high in 2021, driving local solar firms to boost production of the material.
According to the Coordinating Ministry for Maritime Affairs and Investment, two plants are already in progress as a result of a collaboration between unidentified potential investors and domestic firms. The first plant, worth USD 800 million, will be located in Batang, Central Java. It is set to open in the third quarter of 2022 and has an estimated production of 40,000 tons of polysilicon in its preliminary phase. The second plant, valued at USD 3.2 billion, is set to open in North Kalimantan with an estimated production of 160,000 tons of polysilicon.
Indonesia is aiming to reduce its dependence on coal and sees solar energy as the solution. It plans to install large-scale solar panels to generate 5.3 GW of power through 2030. It is also encouraging factories, offices and households to install more panels on their rooftops, as it shifts to green energy.
(Sources: Arab News; Bloomberg)