The Government Sets A Time Limit For The Relaxation Of TKDN PLTS

PLTS (photo: Antara)

JAKARTA - The government provides relaxation in the implementation of the Domestic Component Content Level (TKDN) for Solar Power Plants (PLTS) for projects planned to operate commercially no later than June 30, 2026, according to the electricity supply business plan, can be provided with relaxation of use of Domestic Products.

This relaxation provision is contained in the Regulation of the Minister of Energy and Mineral Resources (ESDM) Number 11 of 2024 concerning the Use of Domestic Products for the Development of Electricity Infrastructure Article 19.

"Currently, we are accelerating the construction of PLTS-PLTS in Indonesia and there are also many factories that have been established to make solar modules, both from the finished and finished modules," said Director General of New Renewable Energy and Energy Conservation (EBTKE) Eniya Listiani Dewi, quoted on Tuesday, August 13.

Eniya said that his party had paid attention to a number of domestic factories that had tried in such a way.

"This is the result of our evaluation by making several visits to several producers of PLTS modules so that we conclude that we set a date or deadline here in article 19 that all projects for PLTS whose sale and purchase agreements are signed no later than December 31, 2024," continued Eniya.

Eniya continued that within the next 5 months, his PPA project was signed before December 31, and was only allowed to reform.

"It is planned to operate commercially, the COD is June 30, 2026, but it is given relaxation to be able to import until June 30, 2025. So this import is only limited, which already has PPA until December 31, plus what can be imported is a business entity that has a commitment to build a solar factory in Indonesia," said Eniya.

The granting of relaxation itself is carried out with the following conditions:

1. The list of Electricity Infrastructure Development Projects in the form of Solar Power Plants (PLTS) is determined through a coordination meeting organized by the coordinating minister in charge of coordination affairs in the energy sector.

2. The Electricity Infrastructure Development Project in the form of Solar Power Plants (PLTS) uses a domestically assembled solar module or solar module which is fully imported by domestic solar module industry companies; and/or foreign solar module industrial companies that have an investment commitment to produce domestic solar modules and meet the provisions of the solar module TKDN in accordance with the provisions of laws and regulations in the industrial sector; and

3. Join the completion of solar module production in accordance with the provisions of the TKDN solar module at the latest time on December 31, 2025.

Regarding investment commitments and production completion capabilities, it is proven by a statement of commitment from the solar module industry company and submitted to Goods and Services Users with copies to the Director General of EBTKE, the Director General of Electricity, and the Director General of Metal Machinery Industry Transportation and Electronics, the ministry that organizes government affairs in the industrial sector.

"If there is a violation of investment commitment, users of basic goods can provide administrative sanctions in the form of setting black data for solar module industrial companies that fail to fulfill their commitments," concluded Erniya.