Entrepreneurs Urge Evaluation of TKDN Relaxation for Solar Panels

Solar module entrepreneurs believe that the government needs to evaluate the regulation relaxing the Domestic Component Level (Tingkat Komponen Dalam Negeri–“ TKDN ”) requirement for Solar Power Plant (Pembangkit Listrik Tenaga Surya–“ PLTS ”) projects. The Chairman of the Indonesian Solar Module Manufacturers Association, I Made Sandika, stated that the policy has not yet succeeded in generating the anticipated number of PLTS projects, thus necessitating an evaluation.

“I have received information that the relaxation of the TKDN requirement has not been optimally utilized,” he said.

Additionally, incentives aimed at facilitating domestic solar panel manufacturing remain a concern. According to Sandika, although a Special Economic Zone (Kawasan Ekonomi Khusus/KEK) has been established for solar panel manufacturing, challenges persist, such as restrictions on the applicable Harmonized System (“ HS ”) codes for setting up solar panel factories.

“The HS Codes applicable to factory establishment still face certain restrictions,” Sandika concluded.