Swedish solar technology company Midsummer AB and Indonesia’s PT Metalogika Rekayasa Sistem said on September 9 that they have signed a binding investment and industrialization framework agreement to establish a thin-film solar cell and module manufacturing platform in Indonesia.

The project is expected to begin with a factory capable of producing 20 megawatts of flexible solar products annually. Subject to commissioning, market demand, financing and operating performance, the partners plan to evaluate an expansion to 200 MW, with gigawatt-scale production identified as a longer-term possibility.

Midsummer will provide its proprietary DUO manufacturing systems, related equipment and technical services. The Swedish company will also take a minority stake in the Indonesian joint venture, combining its production technology with Metalogika’s local industrial presence.

The agreement establishes the project framework but does not constitute an immediate equipment order. Procurement is expected to take place after the joint venture has been incorporated and agreed conditions have been met.

A 20 MW factory as the first industrial test

The initial package is designed to equip a 20 MW-a-year production facility with Midsummer’s DUO systems and other machinery required to manufacture lightweight thin-film solar cells. Midsummer will also provide engineering, training, procurement support and assistance with factory operations.

The joint venture structure is intended to establish the necessary investment and import arrangements before manufacturing equipment enters Indonesia. The parties must also finalize ownership, governance and financing and obtain applicable regulatory approvals and incentives.

Midsummer’s cells use copper indium gallium selenide, known as CIGS, a thin-film photovoltaic technology that can be applied to lightweight and flexible solar products. These characteristics may be useful for roofs and other structures where the weight or mounting requirements of conventional panels create constraints.

The partners intend to sell the panels in Indonesia before pursuing wider opportunities in Southeast Asia and other export markets. The proposed factory would give Midsummer a production foothold in one of the region’s largest economies while allowing Metalogika to develop domestic solar manufacturing expertise.

“Our ambition is to build a long-term industrial partnership in Indonesia, combining Midsummer’s technology and manufacturing experience with Metalogika’s Indonesian industrial capabilities,” said Eric Jaremalm, CEO of Midsummer.

Jaremalm said the first 20 MW project would provide a defined starting point while creating a base for expansion as demand develops. He added that Midsummer’s offering includes equipment, engineering, training and long-term production support alongside its solar technology.

Indonesia seeks local production alongside solar deployment

Indonesia’s electricity system continues to rely heavily on fossil fuels, while the country’s geography and equatorial location provide substantial solar resources. Expanding renewable generation and electrifying remote communities will require additional investment in generation, grids, storage and domestic supply chains.

Firrisky Nurtomo, president director of PT Metalogika Rekayasa Sistem, said the partnership is intended to establish advanced solar manufacturing in Indonesia and develop a locally anchored industrial ecosystem.

“One of the nearest aims is to support the country’s focus on strengthening energy independence and security,” Nurtomo said. “Midsummer brings not only manufacturing technology but also experience, know-how and access to a wider international production ecosystem.”

He linked the proposed factory to Indonesia’s broader solar and rural electrification ambitions, including a recently announced program associated with plans for 100 gigawatts-peak of solar generation and electrification across 80,000 rural areas.

Scaling from 20 MW to 200 MW would require a tenfold increase in annual output. The longer-term roadmap will depend on demand for lightweight solar products, the availability of project financing, local component sourcing and the factory’s ability to meet cost and performance targets.

The proposed investment also reflects a wider shift in solar manufacturing. Countries seeking to accelerate renewable-energy deployment are increasingly looking to build domestic production, reduce dependence on imported equipment and capture more value from clean-energy investment.

For Midsummer, the Indonesian venture would extend its model of supplying manufacturing equipment and expertise to selected international partners. For Metalogika, the project offers a route into thin-film photovoltaic production and access to Midsummer’s wider manufacturing network.

The companies will now proceed with incorporating the joint venture and finalizing its investment, governance and project-finance arrangements. Definitive equipment and technology agreements will follow if the conditions set out in the framework are satisfied.