1 Chapter I Introduction In the growing world of clean energy, solar panels, or photovoltaic (PV) modules, are key for making electricity in a green way. Indonesia, with lots of sunlight, is at an important point in using solar energy to meet its increasing energy needs. But this journey has its challenges. This study is looking at what's happening at PT. Indonesia Solar Global (ISG), a new company that assembly and produce PV modules since 2021, sees the difficulties it faces in a market filled with imported PV modules. This not only slows down the growth of local companies like ISG but also makes people wonder about the future of the country's PV industry. Therefore, this research's work is focused on exploring and solving the issue of being competitive through systems thinking. This approach aims to make sense of the complex market situation and find ways for steady growth. By working on being more competitive against imported modules, the study hopes to help not just PT. Indonesia Solar Global plan better but also add to the larger discussion on supporting local businesses in the worldwide market. I.1 Background The global photovoltaic (PV) module market, as revealed by the (IEA Photovoltaic Power Systems Programme, 2023), is experiencing an unprecedented surge with over 1,183 GW of PV plants installed worldwide by the end of 2022, of which a substantial portion was added in the last five years. This growth is driven by the increasing competitiveness of PV technology, political support, and the need for sustainable energy solutions. The Figure 1 below illustrates the composition of global electricity production and the installed capacity of new renewable energy sources in 2022. PV (photovoltaic) energy, representing 5% of the total electricity production mix, underlines its growing but still modest share in global energy production. Notably, the second chart reveals an overwhelming 73% share of PV in the new renewable installed capacity, demonstrating the solar industry's dominance in the renewable energy expansion. This stark contrast highlights PV's rapid growth rate and potential 2 to increase its share in the overall energy production with continued investment and installation. Source: REN21, IEA PVPS Figure 1. Share of renewable in the global electricity production and renewable installed capacity in 2022 Figure 2 portrays the evolution of annual photovoltaic (PV) installations across major markets from 2012 to 2022. It shows a consistent and significant growth in global PV installations, with China leading the expansion. The graph illustrates the rising trajectory of PV installations, with a notable increase in recent years, reflecting the escalating demand for renewable energy solutions. The European Union, the USA, India, and Japan also show notable growth trends. The "Other IEA PVPS countries" and "Other countries" segments indicate the worldwide spread of PV adoption. The data suggests a compound annual growth rate, underscoring the solar sector's robust growth and its pivotal role in global energy markets. Source: IEA PVPS & Others Figure 2. Evolution of annual PV installations in major markets 3 The evolution of photovoltaic (PV) installations across various global regions from 2012 to 2022 is shown in Figure 3. It shows that the Asia-Pacific region leads with the highest cumulative installed capacity, showing a steep upward trend. Europe follows, with a consistent growth pattern. The Americas and Middle East & Africa regions also display growth, but at a more gradual pace. The "Rest of the World" segment indicates the global spread of PV technology adoption. This data demonstrates the significant expansion of solar energy installations worldwide, with Asia-Pacific at the forefront of this growth. Source: IEA PVPS & Others Figure 3. Evolution of regional PV installations In the context of Indonesia, the global photovoltaic (PV) industry's growth trajectory is reflected through a blend of declining solar component costs and an evolving local manufacturing scene. As detailed in PV Magazine's report (Caroline, 2022), Indonesia is harnessing these global trends to stimulate its domestic market, complemented by government-backed incentives and policies aimed at fostering a competitive local industry. This convergence of global trends with national strategies is creating a fertile landscape for solar enterprises like ISG, providing them with a unique opportunity to capitalize on the local manufacturing upswing while navigating the challenges posed by international competition and domestic market constraints. The Figure 4 indicates Indonesia's ambitious solar capacity addition plan from 2021 to 2030 as per the RUPTL (Electricity Supply Business Plan) (IESR, 4 2022). It forecasts a substantial increase in solar energy capacity, particularly from Independent Power Producers (IPP), with a peak in installations planned for 2029. By 2025, the plan aims to achieve a solar power capacity of nearly 4 GWp, indicating a significant commitment to expanding renewable energy infrastructure. This strategic direction not only complements the global shift towards sustainable energy but also presents a substantial opportunity for ISG to expand its market share in the domestic solar industry. Source: IESR, PLN Figure 4. Solar capacity addition plan in RUPTL 2021-2030 Despite the optimistic growth trajectory of Indonesia's solar capacity, PT. Indonesia Solar Global confronts substantial challenges. The competitive landscape is marked by the influx of imported PV modules that leverage scale and foreign government incentives, creating a pricing challenge for local manufacturers. Furthermore, the company's reliance on government projects for renewable energy introduces a degree of uncertainty, with policy shifts and fiscal distribution exerting considerable influence on the operational stability and expansion prospects. This situation underscores the necessity for strategic approaches to fortify ISG's market position. In the wake of the challenges ISG is facing, the pertinence of this study becomes even more pronounced. It's imperative to not only understand but also 5 strategically address these hurdles to bolster the company's competitive edge and foster enduring growth. Employing a systems thinking approach, this research delves into a holistic analysis of PT. Indonesia Solar Global's strategic challenges. By identifying key points of influence within the company's ecosystem, the study aims to carve out actionable insights for performance enhancement and resilience in a competitive landscape. Systems thinking is recognized as a paradigm shift necessary for sustainability transformations, as discussed by (Voulvoulis et al., 2022).