US Invests USD 500 Million To Build Solar Panel Industry

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia ensured that SUG Solar Inc. collaborated with partner company Indonesia ATW Group (Indonesian partner) worth 500 million US dollars. The cooperation in question is to build a solar panel and module manufacturing industry in the Batang Integrated Industrial Zone (KITB), Central Java.

This was marked by the signing of the Pre-Cooperation Agreement carried out by KITB President Director Ngurah Wirawan, SUG Solar Inc CEO Jim Wood, ATW Group Founder Antonius Weno, and ATW Group Director Victor Samuel.

"The signing of this cooperation is a form of effort from the Government of Indonesia to encourage the energy transition and also the initial process in order to encourage openness between Indonesia and the Government of the United States," Bahlil said in a written statement, Saturday, June 24.

Especially with the Inflation Reduction Act (IRA) which can affect the company's investment interest in Indonesia and also in the electric vehicle ecosystem globally.

"We have come to America as a form of the presence of the Indonesian government to convince American investors to invest in Indonesia. Moreover, the products are not only to be exported to America, but also to other countries. There should be no more perception that it is as if we only focus on investing in certain countries," Bahlil continued.

He added that the implementation of this collaboration was the result of good collaboration and full support from related parties, especially the Embassy of the Republic of Indonesia in Washington, DC, United States.

Present on the same occasion, the Ambassador Extraordinary Plenipotentiary of the Republic of Indonesia to the United States Rosan Perkasa Roeslani expressed his appreciation for the presence and support of the Minister of Investment and his staff in witnessing the signing of this agreement.

SUG Solar through its joint venture company with ATW Group from Indonesia will build solar panel manufacturing facilities and solar modules with a capacity of up to 5 Giga Watt (GW) with a total investment value plan of 500 million US dollars and will create jobs for around 2,000 Indonesian workers.

The United States ranks 6th with the largest investment realization in Indonesia with a total investment of 9.4 billion US dollars during the period 2018 to the first quarter of 2023.

The most dominant investment sector from the United States is mining, other services, electricity, gas and water, chemical and pharmaceutical industries and the food industry. Of the total investment realization, there were 5,683 projects that managed to absorb 82,299 workers.