Electricity had it vital
role in the process of national development, which would eventually contribute
to building just and prosperous society. At the moment all effort to produce electricity
had been enhanced not just to keep up with increasing population and subscribers
but also to improve electrification ratio and to promote the role as national
economic growth alignment. For that matter procurement of electricity by the
Government and the industry must be enhanced. Some industrial groups were
determined to partake in the process of electricity development through
electricity supporting industry like electricity equipment.
Budi Darmadi, the Director General of High-Tech Based
Premium Industry [IUBTT] of the Ministry of Industry stated in Jakarta on
Thursday [7/8] stated that increased electricity consumption at home from
infra-structure development to shipbuilding had enhanced production of electricity
of nig-scale electricity equipment industry in Q III/2014 to arrive at 8.86%
against previous quarter.
On the other hand BPS data had it that increasing
production of electricity equipment products was strongly felt to compare
against Q II/2013 at 4.81%. According to Budi, by reducing import of capital
goods and increase TKDN, it would automatically step up growth of electricity
equipment industry. Domestic Consumption level for building PLN power plant
from upstream to downstream was the main factor of increasing production
performance of electricity equipments.
Not just that, now the effort being stepped up promote
use of TKDN components in upstream oil-gas industry was stimulator for
increased consumption of domestic product. Budi further remarked that cellular
phone industry could also consume high YKDN components, hardware of software
wise. Today the Government was trying to restrict import of such product.
The same was disclosed by circles of electrical equipment
industry. According to the association of Electric Equipment Industry Soepardji
Soekowati this year the industry projected growth of 10% against previous year
in line with electricity consumption of 17.7 Tera Watt hour [TWH]. BPS data had
it that the electricity equipment industry grew by 7.85% in 2013 against 2012.
Players of the industry posted growth of 10% y o y. he stated that application
for electricity equipment was always accompanied by application for new
installations.
Supardji stated
that demand for electrical equipment last year was driven by operations of new
powerhouses in some regions. Supposedly the operation of new generators would
attract people to apply for electricity installation. Supardji stated that the
need for household installation in Indonesia was posted at 80%. The remaining
20% was people without electricity. Supadji disclosed that the competition in
electricity equipment business in Indonesia was high, which caused competition
to be out of control. He said that new factories were offering lower price than
those which had been operating for many years.
Supardji stated that demand for electricity meter last
year was around one million including procurement to electricity meters in high
number for one single supply in Java – Bali. At that time producers were optimistic
about the prospect of electricity equipments. He said that so far the
requirement for local content of electricity meter was not regulated yet.
Without clear regulation, imported products would benefit from PLN’s program to
install millions of power connections in Indonesia. (SS)
Business New - August 13, 2014
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