Pertamina has stated that it is committed to the development of renewable energy in Indonesia and in its efforts to increase the contribution of renewables in the national energy mix. The two state-owned companies signed a memorandum of understanding for the establishment of a joint-venture to develop an integrated PV factory. Currently solar power encompasses 0.05 percent of Indonesia’s energy mix at 18 MWp.
"The Government, through Perpres No. 5/ 2006, launched that 0.2 – 0.3 percent of national energy mix should come from solar energy or equal to 1,000 MWp by 2025. It means an addition of 65 MWp per year. In line with its vision, Pertamina pays attention to quickening the industry development integrated PV solar industry, including the collaboration with LEN," said President Director of Pertamina Karen Agustiawan.
The business model with the collaboration of Pertamina and LEN seeks to cover the entire national solar industry chain development. Currently solar cells are being imported at high prices into the country to be turned into modules. "The establishment of PV solar industry will increase the utilization of renewable energy and increase the independence of national solar energy industry, increase technology capability, create new jobs, and fuel economic development," Agustiawan added.
Off-grid power remains an important theme in Indonesia and Pertamina sees PV as the solution to reach out to distant Indonesian islands, which are not connected to the electricity grid and have difficult natural terrains that block fuel delivery access. Pertamina also sees the market potential for PV in the domestic market for utilities such as road lighting, airport lighting, infrastructure, housing and offices. State-owned corporations and private companies have also been taken into account as potential spaces for solar power usage.