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Edited and Summarized by Indonesia Smart Grid Initiative - Prakarsa Jaringan Cerdas Indonesia (PJCI)

SEG Solar and Government of Indonesia Sign Long-Term Land Lease for 5GW Solar Cell + 3GW Module Facility

Washington, DC, June 23, 2023 - SEG Solar (SEG) and PT Kawasan Industri Terpadu Batang (KITB), an Indonesian state-owned industrial estate, announced that they have entered into a binding agreement for the lease of approximately forty-one (41) hectares of land located in the Batang Regency, Central Java, Indonesia for a term of eighty (80) years. SEG intends to invest a total of $500 million to develop the land for construction of a 5GW solar cell production facility and a 3GW solar module manufacturing facility through PT SEG ATW Solar Manufaktur Indonesia, a joint-venture project company. SEG has partnered with PT ATW Investasi Selaras (ATW Group), an established Indonesian-based renewable energy investment company, to assist with the development of the facilities at the local level in Indonesia.

The solar cell production line will vertically supply SEG’s module factory in Houston, Texas, USA and guarantee full capability to trace components within the module supply chain. This transaction signifies a promising start to the relationship between SEG and the Indonesian government, serving as a crucial step in the company's investment strategy for the region. SEG aims to cooperate with other PV component suppliers, including wafers, ingots, junction boxes, frames, and EVA films, to establish manufacturing facilities in Indonesia, paving the way for comprehensive business development across the entire PV value chain.

Jim Wood, CEO of SEG, emphasized the rationale behind selecting Indonesia as the location for this significant investment. "We conducted a thorough evaluation of various factors, and Indonesia emerged as the ideal destination for foreign investment. The country offers a supportive environment with favorable policies, taxation benefits and abundant silicon


Antonius Weno, founder and chairman of ATW Group stated, “We are excited to be a part of this significant step in the growth of the renewable energy industry in Indonesia. The world-class manufacturing experience and financial commitment from SEG will upscale Indonesian involvement in the global supply chain of the renewable energy industry."

Ngurah Wirawan, President Director of KITB, said “KITB is looking forward to partnering with the SEG to bring more renewable energy production to the country. This is a win-win collaboration that will ensure a stable and cost-effective supply of core materials for SEG modules and create jobs for the local economy in Indonesia. The strategic decision to select SEG for operations in Indonesia reinforces KITB’s commitment to meet the growing demand for solar energy and energy independence in Indonesia.”

Bahlil Lahadalia, Minister of Investment of The Republic of Indonesia, expressed enthusiasm for SEG's investment in the country. “This investment will create more than 2,000 jobs for the people of Indonesia and significantly contribute to the economic growth of the Batang region. The Indonesian government is committed to providing tax support, aiming to foster mutually beneficial outcomes."

The facilities are scheduled to be completed in Q2 2024 and will be Indonesia’s largest solar cell and module factories. SEG is the first investor from the United States to invest in Batang, Central Java.

About ATW Group

ATW Group (PT ATW Investasi Selaras) is an Indonesian-based renewable energy investment company. With the vision of “energy independence for everyone by the power from the sun,” ATW Group delivers more solar energy to empower businesses, homeowners, and communities with cleaner, cheaper, and more reliable energy. ATW Group is the founder and sponsor of ATW Solar, Indonesia’s leading solar engineering-procurement-construction (EPC) company serving the residential, commercial, and utility sector with more than 180 MWp portfolio throughout the archipelago.

About SEG

Founded in 2016, SEG is a leading vertically integrated PV manufacturer headquartered in Houston, Texas, USA and is dedicated to delivering reliable and cost-effective solar panels to the utility, commercial, and residential markets. The company validates its product performance through independent third party testing and is accredited for social responsibility and legal compliance. SEG will have more than 5.5GW of global module production capacity in 2024. More than 2GW of SEG products have been installed in the U.S. and European markets to date.

About KITB

Kawasan Industri Terpadu Batang (KITB) or Grand Batang City is the latest state-owned Industrial Estate in Indonesia which is appointed to be one of the National Strategic Projects since its establishment in 2020. KITB has 4,300 hectares of land, with development proceeding in three clusters. KITB provides hassle‑free investment experience with full support from The Government of the Republic of Indonesia. In less than 2 years in its development, KITB successfully managed to exceed its marketing target by leasing 184 ha of its Phase 1 industrial land to its tenants, compared to the national take-up rate of industrial land which is only 10-20 ha/year.

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