Current situation and policy of LED lighting market in Indonesia

[LED] Indonesia is located in Southeast Asia, across the equator. On the border with Papua New Guinea, East Timor, Malaysia, Singapore, and Thailand across the sea; Philippines, Australia and other countries, is the world's largest archipelago, is following the China, India and the United States the fourth most populous country, with a population of 240 million, 18307 islands, and every year by 6.3% (2012) of the rapid economic growth trend that is one of the most potential dynamic market.

According to the report issued by the Asian Development Bank, the ASEAN Development Outlook, Indonesia economic growth in 2014 will reach 6.6%, the highest level in nearly 15 years. Rich natural resources have made Indonesia the world's leading supplier of raw materials, the average economic growth rate in the past 5 years up to 5% to 6%. However, the industrial base is weak, and the level of science and technology is low, so a lot of industrial products are dependent on imports.

Increase in electricity penetration increased export quotas

Indonesia is a power hungry country in Southeast Asia, Indonesia's population of more than 250 million, but the penetration rate of less than 60%, more than 40% of the population has no access to electricity. Even in the Indonesian capital of Jakarta, occasionally because of lack of electricity to implement rolling blackouts.

But the Indonesian government recently said that within 5 years, the rate of self-sufficiency in electricity supply is expected to reach 100%. The Ministry of energy and Mineral Resources Minister Su Di Coleman said. Said that although some remote areas is still in a state of no power outage even, but 84% of the area has been able to ensure a stable supply of power supply, 2015 Indonesia self-sufficiency rate will reach 75%, the government provides solar lighting equipment, at the same time for people in remote areas, also will urge investors to increase investment in the energy sector.

With the development of power system investment to increase and enhance the environmental awareness of the global lighting industry, Indonesia as a starting point of national environmental protection and energy saving into orbit, in addition to the current public construction is promoted, it quickly LED lighting applications in the commercial space and traffic lighting.

According to the Indonesia Light Industry Association (Aperlindo) said that the current LED lighting accounts for about 10% of Indonesia's electricity market sales, the future potential. The Indonesian market, energy saving lamps and light bulb sales reached about 320 million units, of which only about the production of Indonesia, about 80% of imports! According to customs data show that in 2015 China's Q1 exports to Indonesia lighting products more than $20 million.

Data source: China Customs

"Belt and Road Initiative pulled LED market prospects

For the replacement of existing traditional lighting market, in 2010, OSRAM Opto Semiconductors Golden DRAGON Plus LED PT Tricomm has been selected as lighting Solarens lighting solutions, installed in the Indonesian capital of Jakarta 9.7 km west outer ring road 1 road.

Of course, this is just the tip of the iceberg. For such a traffic lighting market, Indonesia is far more than these. According to the latest data from the Ministry of transport statistics in 2015, Indonesia's total length of 8159 km of the railway network is still a normal operation of a total of about 4816 km, and about another 3343 km (accounting for 40%) of the railway has been abandoned. Visible, Indonesia's lighting market demand is very large, this is the LED enterprises to improve product grade, rapid development of Indonesia's lighting products export excellent opportunity.

While commercial lighting, in recent years in large shopping malls in Indonesia (such as Carrefour, Hypermart, Giant, Carrefour, Lotte Mart) and hardware building materials furniture stores (such as Ace Hardware, Index Furniture) is rapidly increasing in the business better. Indonesia hot weather, urban air is not good, people rarely engaged in outdoor leisure activities, the weekend the size of the family to the mall to stroll around, enjoy air conditioning. And in recent years the economic situation is relatively stable, the outflow of funds have returned to Indonesia construction in large shopping center, in Jakarta, Surabaya, the number of Bandung City, large shopping malls such as bamboo shoots after a spring rain opening, there is large market more than 30 of the Jakarta area alone.

For the future development of Indonesia's lighting market, it is worth mentioning. According to the Indonesian Ministry of Finance disclosed, according to Indonesia, "2015-2019 construction of the medium-term development plan", the next 5 years, Indonesia will build 2650 kilometers of roads and 1000 kilometers of highway, 3258 km of railways, 24 large ports, 60 ferry terminals and 15 modern airports, 14 industrial parks, 49 reservoirs and 33 hydropower station. And the establishment of irrigation system for about 1 million hectares of farmland, which is expected to amount to about $424 billion 500 million.

Indonesia's "construction of marine power strategy" and our advocacy of "The Belt and Road" strategic fit, the potential market and these projects where the future will be the main battlefield of LED lighting.

Policy support

In Indonesia's renewable energy policy, gradually change the past only for the energy supply side of the management of the policy, the implementation of the policy model of energy demand side management. Indonesia has abundant renewable energy resources, has considerable potential for the country's renewable energy development project in Indonesia, with the development of renewable energy including biomass energy, geothermal, solar, hydro and tidal energy. According to estimates, the Asian Development Bank and the International Energy Agency and other international organizations to 2030, the total generating capacity of up to 318 billion degrees, the generating capacity of coal increased to 63%, natural gas accounted for 20%, generating capacity of renewable energy will be accounted for 12%, while the hydraulic power is about 4%, oil generation is only 1% left.

Indonesia administration