Electrical Power Systems
Indonesia
Overview
USD Millions 2004 2005 2006 (estimated)
Total Market Size 506.0 577.8 718.2
Total Local Production 274.5 274.5 302.0
Total Exports 247.5 247.5 272.3
Total Imports 479 550.8 688.5
Imports from the U.S. 61 73.2 87.8
Note: The above statistics are unofficial estimates.
Indonesia has been experiencing a power crisis since 2004 as a result from a lack of new investment in power plants between 2000-2005. With an average growth rate of 8.3% per year, electricity demand will increase from 97.91 gigawatt hours (GWh) in 2004 to 145.72 GWh in 2009. The electrification ratio is expected increase to reach 67.9% and new customers will increase by 10 million in the next five years. The government has projected that the financial requirement for power development during 2006-2014 is $41 billion, with power plant development $26.36 billion, transmission $7 billion and distribution $8 billion.
The total market value for electrical power equipment in Indonesia was $577.8 million in 2005. Indonesia imported $550.8 million electrical power equipment in 2005. The market share of US products was 13% of the total value of imported product (or $73.2 million in 2005). The other major suppliers for this industry in Indonesia are Singapore, Japan, France and Germany.
Best Prospects/Services
Imported U.S. products comprised $61 million or around 13% of the total import value of electrical power equipment in 2004. As the market size increased in 2005, the imported value of US products also increased to $73.2 million in 2005. Indonesian companies usually import U.S. products directly or through the agent/distributors in Singapore. It is estimated that the value of imported products from the US will increase by 20% in 2006.
U.S. companies are strong competitors in parts for boilers, parts of auxiliary plants for use with boilers, parts for turbines, electrical generating sets, other transformers, lightning arresters, junction boxes, panel boards, and electrical conduits.
Opportunities
The GOI recently launched a crash program to provide an additional supply of 10,000 MW until 2009. Around 8,000 MW would be developed by private companies and the rest would be produced by PLN, the state-owned electricity company. In 2007, the GOI predicts that the investment for this industry will reach $3.3 billion.
Construction of power plants and transmission lines in Indonesia should bring significant commercial opportunities for US companies that supply engineering services and equipment such as turbines, substations, transmission and distribution equipment.
Resources
Directorate General of Electricity, Ministry of Energy and Mineral Resources
Website: http://www.djlpe.esdm.go.id/
PT Perusahaan Listrik Negara
Website: http://www.pln.co.id