Tuesday, 1 December 2015


Domestic steel industry is believed to able to meet the needs of electricity transmission project of 46, 597 kilometer. In addition to steel, national electricity transmission project of 46,597 kilometer. In addition to steel, national electrical component manufacturers are also capable of supplying to the giant project. The plan is that the network consists of 150 KV transmission, 275 KV and 500 KV that will built in 10 years from 2015 to 2040. Among the three, the 150 KV transmission becomes the longest network, which reaches 40,413km.

Looking at the length of the transmission project, Minister of Industry Saleh Husin took into account the huge needs of components that can be produced by the domestic industry. “For the 150 KV transmission alone, each one kilometer needs 3 units of tower. The weight of one tower is 10 tons or 30 tons per km. Here we see that this project can drive and support Krakatau Steel and other domestic steel manufacturers,” said Industry Minister Saleh Husin after attending a meeting on Electricity Transmission led by Vice President Jusuf Kalla at the Vice Presidential Place, in Jakarta, Thursday (July 30).

Further, the Minister of Industry said that the material component of tower consists of an L profile iron (86 percent of the weight of the tower), plate iron (10 percent) and bolts (4 percent). National component manufacturers are believed to play a role and enjoy this project, such as manufacturer of conductor wires and ceramic insulators. The need for each of these components is 9.3 tons per km and 346 units per km.

As for the 275 KV transmission, the number of towers is 2.5 units per km with a weight of 45 tons per km. The 500 KV transmission network requires 2 units per km and tower weight of 80 tons per km. In addition to electrical tower, cable and ceramic insulator, there is a need for fittings and accessories. Total needs of transmission material for 10 years reached IDR 76.16 trillion.

“In general, it involves the steel industry, wire manufacturer, components, towers, and built by a national contractors. To that end, the Ministry of Industry will fight for the use of domestic components in the transmission project so that the national industry will obtain maximum benefit,” said Saleh Husin.

In addition to being able to meet the needs capable of producing capital goods to supply electricity infrastructure development, such as power plants. The Ministry of Industry recorded that there are three companies as producers of turbine with a capacity of up to 27 MW, two companies as producers of generators of boilers of up to 660 MW, 5 companies as producers of transformer, 2 companies as producers of compressor, 2 companies as producers of pressure vessels, and 3 companies as panel producers.

Furthermore, there are 5 companies as producers of KWH maters; 4 companies as producers of industrial pumps; two companies as electromotor producers; engineering, construction and procurement; and 12 companies in the steel industry.

Industry Minister Saleh Husin admitted that more stringent local content (TKDN) policy is a bold step to realize the independence of industry and infrastructure development. Some sharpening done is the drawing up of detail rules and implementation followed by surveillance. The use of domestic products in government spending is highly potential to cultivate and strengthen the structure of the manufacturing industry.

It can be seen from the use of the State Budget (APBN), among others, capital expenditures of the central government in 2015 at IDR 290 trillion or 14.22 percent of total central government budget of IDR 2,039.5 trillion. While, needs for capex (capital expenditure) of all state-owned enterprises this year reached IDR 300 trillion. (E)

Business New - August 5, 2015

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