American scrutiny on solar exports raises stakes for Indonesia’s booming panel industry.
Indonesia’s solar panel industry faces a major challenge as the United States investigates allegations of dumping by manufacturers operating in the country. The probe could lead to steep tariffs, potentially disrupting Indonesia’s rapidly growing solar exports and straining trade ties.
U.S. Launches Anti-Dumping Investigation
In mid-July 2025, the American Solar Manufacturing Trade Alliance, comprising major firms like First Solar and Qcells, filed a petition accusing Chinese companies of using facilities in Indonesia, India, and Laos to bypass existing tariffs. The U.S. International Trade Commission (USITC) quickly launched an anti-dumping and subsidy investigation, raising fears of new tariffs on Indonesian products.
Batam Under Spotlight
Batam has become a strategic hub in China’s solar supply chain. Bloomberg analysis shows that Indonesia exported US$608 million in solar products to the U.S. in the first half of 2025, with 70% coming from six Batam-based companies tied to Chinese executives. PT Rec Solar Energy Indonesia, part of Cambodia-based NE Solar, emerged as the top exporter with US$219 million in shipments.
Chinese Ownership and Supply
Chain Links
Corporate records reveal strong ties between Batam manufacturers and Chinese parent companies. PT Rec imported 91% of its raw materials from a Chinese supplier owned by the same individuals. Similar ownership links appear in five other Batam firms, collectively exporting US$419 million in panels to the U.S. during the same period. These connections fuel allegations that production in Indonesia may be a transshipment tactic rather than genuine local manufacturing.
Rapid Export Growth Raises Suspicions
Indonesia’s solar exports to the U.S. surged 350% in early 2025, following the imposition of a 3.521% tariff on products from Cambodia, Vietnam, Malaysia, and Thailand. With Laos and India also seeing sharp increases, the U.S. suspects that Chinese companies are shifting production to regions not subject to tariffs to evade trade barriers.
Industry and Government Reactions
The Indonesian Solar Module Manufacturers Association (Apamsi) expressed concern that proven dumping could hurt local photovoltaic (PV) producers. Chairman I Made Sandika Dwiantara urged the government to investigate potential transshipment schemes and protect domestic industry. “If many ‘Made in Indonesia’ claims are just trade tricks, our industry will suffer,” he warned.
The Ministry of Trade confirmed that it had received the U.S. petition. Director of Trade Safeguards Reza Pahlevi stated that Indonesia will defend its position through transparent and data-driven engagement. “We will coordinate with exporters and stakeholders to ensure Indonesian interests are protected,” he said.
Potential Impact of Tariffs
If the USITC finds unfair trade practices, new tariffs could severely impact Indonesian exporters that rely heavily on the U.S. market. Data shows exports rose from US$19.8 million in 2021 to US$553.4 million in 2024, with US$433 million recorded in just the first five months of 2025. The solar sector, a key growth area for Indonesia, now faces uncertainty as it navigates this trade dispute.
The U.S. anti-dumping probe into Indonesian solar panels underscores the risks of global trade dependence and complex supply chains. For Indonesia, safeguarding its solar industry means ensuring compliance, transparency, and stronger local value creation—critical for sustaining exports and reinforcing economic ties with partners like the U.S. and Singapore.
Sources: GoKepri.com (2025), , Bisnis.com (2025)
Keywords: Solar Panel Dumping, U.S. Trade Probe, Batam Solar Exports, Indonesia China Links, Anti-Dumping Investigation
