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