Swedish thin-film solar equipment maker Midsummer AB and Indonesian industrial group PT Metalogika Rekayasa Sistem said they have signed a binding investment and industrialization agreement to establish flexible CIGS solar cell and module manufacturing in Indonesia.

Under the deal, Metalogika plans to build a production facility with initial capacity of 20 MW per year, with potential expansion to up to 200 MW annually, to supply solar panels to the Indonesian market and for export.

Midsummer will supply manufacturing equipment and related services for the plant, including its proprietary DUO thin-film production system, and will take a minority equity stake in the new joint venture. The companies did not disclose the exact size of Midsummer’s stake.

The companies said the joint venture will first be formally established, followed by finalization of governance terms, Indonesian regulatory approvals and incentives, project financing, and definitive equipment and technology agreements, before manufacturing equipment is imported.

Midsummer CEO Eric Jaremalm said the company aims to build a long-term industrial partnership in Indonesia, combining Midsummer’s technology and manufacturing experience with Metalogika’s industrial capacity, starting with the 20 MW facility while laying the groundwork for further scale-up.

Firrisky Nurtomo, president director of Metalogika, said the initial plant provides a practical starting point toward substantially larger Indonesian manufacturing capacity with local components, and linked the project to Indonesian President Prabowo Subianto’s recently launched program targeting 100 GW of solar capacity nationwide and electrification of 80,000 rural areas.

According to separate company disclosures, Midsummer has previously used a similar model in Colombia, where it is supplying equipment for a CIGS factory with a capacity of at least 100 MW per year, with cumulative machinery orders for that project reported at about SEK 380 million ($39 million).

In a separate announcement earlier this month, Midsummer said it would abandon plans for a 200 MW factory of its own in Sweden, declining an available EU grant, which the company said reflects a strategy focused on equipment sales and minority stakes in partner-led factories rather than self-financed manufacturing.

According to Indonesian government statements and analyst commentary, Indonesia’s 100 GW solar program, launched in August, carries an estimated $73 billion price tag and an ambitious three-year completion target that analysts including the Institute for Essential Services Reform (IESR) have described as highly challenging given the country’s current module manufacturing capacity, grid readiness, and financing needs.

The Colombia solar module plant, which Midsummer is developing with Swedish aerospace and defense company Saab, is tied to Saab’s offset commitment following its sale of Gripen fighter jets to the Colombian air force – an industrial-cooperation structure distinct from the commercial joint venture model Midsummer is now applying in Indonesia.