Local Electricity Products to Boost Industrial Sector Performance: Minister

TEMPO.CO, Jakarta -  Industry Minister Agus Gumiwang Kartasasmita has said that he believes the local product utilization policy and the rapid development of electricity infrastructure will boost the national industrial sector's performance.

“Electricity acts as the heart of industrial sector life. Hence, it is understandable if the actors who want to invest in Indonesia have always asked about our electricity supply availability," he remarked in a press statement here on Saturday.

According to the ministry’s data, the import value of the electrical equipment industry reached Rp116 trillion in 2019, while the number fell to Rp103 trillion in 2020.

The decline in imports has indicated that the Indonesian electricity supporting industry is growing and is able to meet the domestic market demand, Kartasasmita observed.

Currently, only 413 items out of the 3,404 certified electrical equipment products have less than 25 percent of local content requirement (TKDN), he said. Meanwhile, there are 664 products with TKDN value of 25-40 percent and 2,327 products with more than 40-percent TKDN value, he added.

The minister said that currently, the domestic high-voltage electrical equipment industry is capable of producing various items for electric power generation, transmission, and distribution components.

The items that have been locally manufactured comprise electricity cables, which are being produced by PT KMI Wire and Cable Tbk, PT Citra Mahasurya Industries, PT Supreme Cable Manufacturing & Commerce Tbk, PT Voksel Electric Tbk, and PT Jembo Cable Company Tbk, he informed.

Meanwhile, other domestic produced items are electrical equipment for transformers (with TKDN value of 22.06-60.35 percent), pressure vessels (15.10-46.80 percent), industrial pumps (42.80-62.67 percent), transformers (22.06-60.35 percent), insulators (17.71-54 .08 percent), and power cables (13.17 to 99.95 percent), he added.

In addition, electrical panels (with TKDN value of 17.32-75.5 percent), kWh meters (27.76-62.54 percent), connectors (19.52-41.47 percent), isolators (63.85-69.45 percent), solar modules (41.50-45.50) percent, and transmission towers (49.24-55.86 percent) are also being manufactured by local producers, the minister disclosed.

The government is targeting the average TKDN value to reach 40 percent in all industrial sectors by 2024.

"We continue to encourage the optimization of the TKDN policy to provide a huge multiplier effect to the national economy -- stimulating the supporting component industrial sectors to strengthen our manufacturing industry structure," Kartasasmita said.

Read: Sri Mulyani: Free Electricity Program Extended Until September

ANTARA