Danantara has announced plans to develop a large solar panel manufacturing facility in Indonesia with a planned production capacity of 50 GW. The project, supported by an initial investment of about USD1.4 billion, aims to strengthen the country’s renewable energy sector and reduce reliance on imported solar technology.

The proposed facility will focus on the large-scale production of solar cells and modules to support Indonesia’s growing solar energy market. The project is intended to help expand both utility-scale solar projects and rooftop installations while improving the affordability and availability of solar technology across the country.

The initiative is expected to support Indonesia’s broader energy transition goals by building a domestic supply chain for renewable energy technologies. In addition to increasing local manufacturing capacity, the project could stimulate related industries such as glass production, aluminium frame manufacturing and semiconductor materials used in solar panels. Authorities also expect the facility to create employment opportunities and position Indonesia as a regional manufacturing hub for solar energy equipment in Southeast Asia.