Use Of Local Products In Electricity Sector, Boosts National Industrial Productivity

Photo: Antara

JAKARTA – In order to boost the performance of the national industry, Minister of Industry Agus Gumiwang Kartasasmita believes that the policy of using local products and the rapid development of electricity infrastructure will have a multiplier effect.

“Electricity is like the heart of the life of the industrial sector. That is why, it is not excessive if investors who want to invest in Indonesia always ask about the availability of electricity supply," said Minister Agus Gumiwang, quoting Antara, Saturday, August 28.

According to data from the Ministry of Industry, in 2019 the import value of the electrical equipment industry reached Rp116 trillion and decreased to Rp103 trillion in 2020.

The decline in imports shows that the electricity supporting industry in Indonesia is growing and is able to meet demand in the domestic market.

Currently, there are 3,404 certified electrical equipment products, with an achievement value of the Domestic Content Level (TKDN) below 25 percent, totaling 413 products. Then between 25 percent and 40 percent reached 664 products, and more than 40 percent there were 2,327 products.

Minister Agus said that the domestic high-voltage electrical equipment industry is now capable of producing various products ranging from power generation, transmission, and distribution.

Products that have been produced by the domestic industry include, among others, electrical equipment for transformers with TKDN between 22.06-60.35 percent produced by several companies, such as PT Sintra Power Elektrik, PT Trafoindo Prima Indonesia, PT Unelec Indonesia, PT Amtra Electric, and PT Schneider Indonesia.

Furthermore, power cables have also been produced by many manufacturers, including PT KMI Wire and Cable Tbk, PT Citra Mahasurya Industries, Supreme Cable Manufacturing & Commerce Tbk, PT Voksel Electric Tbk, and PT Jembo Cable Company Tbk.

Several domestically produced electrical products certified with TKDN values include pressure vessels between 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 from 13.17 to 99.95 percent.

Then there are also electrical panels with a TKDN value of 17.32-75.5 percent, kWh meters 27.76-62.54 percent, connectors 19.52-41.47 percent, insulators 63.85-69.45 percent, solar modules 41.50-45.50 percent, and transmission towers 49.24-55.86 percent.

The government targets the average TKDN implemented by industry players in all sectors to reach 40 percent by 2024.

"We continue to encourage the optimization of TKDN so that it can provide a broad multiplier effect for the national economy, including stimulating the business of the supporting component sectors so as to strengthen the structure of the manufacturing industry in the country," concluded Minister Agus.