As US tariffs squeeze Chinese solar firms across Southeast Asia, Indonesia is emerging as a surprising outlier – sensing opportunity where others feel the heat.
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While its neighbours grapple with the fallout of Washington’s trade crackdown, Jakarta is doubling down on its renewable energy ambitions, wooing Chinese investment and positioning itself as the region’s next solar powerhouse.
To attract Chinese solar giants looking to diversify their operations, the Indonesian government is loosening its regulatory grip, slashing local content requirements and leveraging billions in potential investments.
But analysts warn that the country could become the next target in the US-China solar stand-off, even if it is not currently on Washington’s tariff radar.
Jakarta’s courtship of Chinese solar firms is already bearing fruit. Over the past 18 months, at least four solar projects linked to Chinese companies have begun operations in Indonesia and Laos, with another two in the pipeline, according to Reuters. Together, these projects aim to produce 22.9 gigawatts of solar cell and panel capacity – much of it destined for the United States.
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