Indonesia's Manufacturing Sector

Indonesia Transitioning to EV Era: Official​


Thresa Sandra Desfika, Monique Handa Shafira

September 19, 2024 | 12:27 pm


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Researchers test an electric car at the Indonesia Digital Test House (IDTH) facility in Tapos, Depok, West Java, on Tuesday, May 7, 2024. IDTH is the largest and most comprehensive digital and telecommunication device testing center in Southeast Asia. (ANTARA FOTO/Muhammad Adimaja)


Jakarta. Indonesia is moving towards the electric vehicle (EV) era, with a mid-term goal of adopting 15 million EVs by 2030, primarily consisting of two-wheelers, an official said on Wednesday.


Rachmat Kaimuddin, Deputy for Infrastructure and Investment under the Coordinating Minister for Maritime Affairs and Investment, said the target is part of the government’s broader efforts to achieve net-zero carbon emissions and ensure energy security.


The country aims to have 13 million electric motorcycles and 2 million electric cars by 2030, he said.


"Indonesia is transitioning to electric vehicles, which presents unique opportunities to drive economic growth and enhance our energy security. This transition will also play a key role in advancing our sustainable development goals," Rachmat said in Jakarta.

"EVs will not only help reduce carbon emissions but also create new economic opportunities for the population at large."


Chief Economic Minister Airlangga Hartarto previously mentioned that the government has implemented several initiatives to accelerate the EV transition, including tax incentives for EV purchases and imports.


Between January and July, electric car sales more than doubled, reaching nearly 18,000 units compared to the same period last year.


"EV technology is rapidly advancing, particularly in terms of battery efficiency and charging infrastructure," Airlangga said.


He added that the government aims to support consumers by ensuring affordable EV options and providing reliable information on their long-term benefits.


Despite these efforts, Indonesia's EV journey has only just begun, with around 150,000 electric motorcycles, cars, buses, and trucks currently in use across the country.

 

Empowering Local Industries, BUMI Spend Products Worth US $ 2.215 Billion (in 2023)​


Author: Emanuel Kure 20 Sep 2024 | 21:30 WIB

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Location of PT Arutmin Indonesia site Asamasam, subsidiary of PT Bumi Resources Tbk ( Photo: BUMI)

JAKARTA, Investor.id - PT Bumi Resources Tbk (BUMI) is committed to encouraging the growth and sustainability of domestic industries. The commitment is realized through one of its business unit entities, namely PT Kaltim Prima Coal (KPC), which is recorded to buy domestic goods and services in the value of US $ 2.215 billion during 2023.


This amount is equivalent to 97% of the total purchases of goods and services (domestic and foreign) KPC in that year which reached approximately US $ 2.27 billion.


"The empowerment of local suppliers is one of the important points in the principle of Good Mining Practice that is applied by the company in all lines of activities," said VP Investor Relations - Chief Economist Achmad Reza Widjaja in his press statement on Friday (20/09/2024).

Furthermore, Reza asserted, the commitment of BUMI to always provide added value for the environment and help the community.

"The Eso has always sought for other economic movements that can support welfare, in accordance with the potential of the community around the operational land," he said.

In 2023, from the overall shopping of domestic goods and services carried out by KPC, amounting to US $ 4.96 million of them came from 35 built suppliers. Community empowerment through industrial development around mining operations is expected to encourage local supplier partners to be able to grow and be competitive.


Also Read: Stocks of Bumi Resources (EARTs) Are Surprised

On the other hand, in each partnership, sustainability criteria are highly preferred in the selection and evaluation process. Every supplier in collaboration with BUMI is certain to comply with the principles of Human Rights (HAM) and environmental preservation. Procurement procedures and services are also carried out fairly and transparently to obtain suppliers in accordance with the desired qualifications.


Reza also emphasized that the empowerment of local suppliers is a synergy that is expected to contribute to real socio-economic, both for the community and local and national industries, the Company itself, stakeholders, and for the state.


Also Read:​

QUEST PGN Improves Productivity Processing of Natural Gas Infrastructure Engineering Data

In fact, through various forms of strategic partnerships, companies can not only meet operational needs, but also contribute to encouraging regional and national economic growth.


"This policy continues to improve every year, so it is expected to support the improvement of the local and national economy, while implementing aspects of Good Mining Practice, especially in terms of partnerships," Reza explained.


 

PLN spent Rp200 trillion (12.7 Billion USD) on local components in 2022​

November 23, 2022 20:11 GMT+700

Jakarta (ANTARA) - State-owned electricity firm (PLN) spent nearly Rp200 trillion out of the total budget of Rp300 trillion on local products so far this year, PLN President Director Darmawan Prasodjo stated.

"Our spending reaches Rp300 trillion per year out of which Rp200 trillion is spent on the domestic industry," he noted while opening PLN Locomation 2022 at the Jakarta Convention Center (JCC) on Wednesday.

 
Talking about Turbine manufacturing, it is PT Barata Indonesia that should be considered. It has exported Turbine components to China, South Korea, and Australia, beside Pakistan and Bangladesh. There is plan to include Barata before to be part of Indonesia submarine local production by producing some local parts.

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Barata Indonesia exports turbine components to Australia​


  • Tuesday, July 30, 2019 12:48 WIB
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PT Barata Indonesia exports the components of power plant turbines to Australia. (Barata Indonesia)

Jakarta (ANTARA) - PT Barata Indonesia (Persero) exports the components of the Power Plant Turbin which is produced by the Turbin Component Plant, the Division of Plants - PT Barata Indonesia, Cilegon to Australia.

The product exported this time is the Low Pressure Inner Casing (LPIC) 1x1.105 MW to Australia, on Tuesday, based on written information received by Antara in Jakarta on Tuesday.

Later the components of this country's artificial power plant will be used for upgrading the capacity of the AggL Energy power plant capacity of 2,210 MW (2x1,105 MW). The power plant accounts for about 30 percent of the supply of electricity needs in Victoria, Australia.

Barata Indonesia performs fabrication work, machining to assembling Turbin.

Western President Director of Indonesia Oksarlidady Arifin said that the export of power generation components by Barata Indonesia will continue to be increased as an effort to strengthen the position of the company in the field of exports in addition to other export products such as Railway components (Bogie) which are currently routinely exported to Mexico and Canada.

"I hope that this Turbine Component Factory can do the same thing and become one of the backbone of the export of products carried out by Barata Indonesia," said Dady, Oksalidady Arifin's close call.

In addition to exporting LPIC, Barata Indonesia also exports other power plant components, namely Condenser to Russia. Barata Indonesia worked on a Condenser owned by Nizhnekamskneftekhim (member of TAIF Group).

This project has also been carried done by Barata Indonesia since September last year.

Before exporting to Australia and Russia, Barata Indonesia has also exported power plants, to various countries, such as Condenser and LP Outer Casing (Brazil, Argentina and Pakistan), Blade Ring Components ( Panama, Argentina, Brazil and Pakistan), Inner Casting (Bangladesh) and Combustion Chamber (Taiwan).

Read also: Barata Indonesia exports cement industry components to Morocco

 
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The Division of Plants, through the Turbin Components Plant in Cilegon, again exported power generation components.

This time, PT Barata Indonesia (Persero) exported the components of the Silo Combustion Chamber to Zhoushan, China.

The silo Combustion Chamber is for Zhejiang Petrochemical Co. Ltd to be used in the Zhoushan GT 20 project.

For 2021, Barata Indonesia has bagged several power generation component projects. Previously, Barata Indonesia also participated in the “Smart Energy Center” power plant project owned by the South Korean company, SK Hynix located in Cheongju.

Some of the projects that are being and will be worked on by the Turbin Component Plant in Cilegon are:

BQPS III Unit 20 Condenser (Banglades)

Unique Condenser (Banglades)

Hynix Icheon Condenser & LPOC (South Korea)

– RDMP Balikpapan Condenser Unit 1-5 (Indonesia)



 
Pindad made Escavators (various variants)


Pindad Excava 200: A Product of Dual-Purpose Technology​



Pindad Amphibious Excavator Excava200 - Excavator Amfibi Pindad​


Real use



 
In 2023, Pertamina Uses Domestic Component Levels of Up to IDR 374 Trillion (25 Billion USD)

2024-06-12
Press Release2723


Jakarta, June 12, 2024 - Throughout 2023, Pertamina Group has succeeded in absorbing the realization of the Domestic Component Level (TKDN) of up to 47% of the total TKDN of BUMN (state owned companies) nationally, or IDR 374 trillion. Pertamina carries out the mandate to use TKDN to the maximum, with the largest realization coming from the procurement of hydro (oil and gas and others). In addition, infrastructure development and procurement of goods and services, which in total reach 73.2% of Pertamina Group contracts.

With this TKDN achievement, in March 2024, Pertamina received an appreciation for the Use of Domestic Products in 2024 for the State-Owned Enterprises Category from the Ministry of Industry (Kemenperin) of the Republic of Indonesia. Pertamina Group's TKDN is worth IDR 374 trillion, or 47% of the total BUMN (State Owned Company) TKDN (Local Content) achievement in 2023 of around IDR 800 trillion (53 billion USD)

"We are grateful for the appreciation from the Indonesian Government. This is a motivation for Pertamina to continue to increase its TKDN, so that it can better support the domestic industry and have a positive impact on the national economy," added Fadjar.

Based on a study by the Pertamina Energy Institute and the University of Indonesia, Pertamina's TKDN achievement also creates a multiplier effect, namely employment for 4.1 million people, as well as an increase in gross domestic product (GDP) of up to IDR 702 trillion, or equivalent to 3.4% of gross added value from all economic sectors in a region (ADHB GDP). In terms of the national economy, this has the potential to generate state revenues of up to IDR 1,251 trillion.

As a national energy company, Pertamina's products also contribute to the domestic energy supply. Pertamina's national oil production reaches 69% (from total Indonesia production generated by local and foreign companies), and natural gas as much as 34%, all of which are allocated to support Indonesia's energy security. In 2023, Pertamina will also be 100% independent in producing diesel and aviation fuel products.

"Efforts to increase oil and gas production are always carried out by increasing production from existing blocks, as well as Pertamina's acquisition and expansion into foreign blocks.

Pertamina is also trying to improve refinery and petrochemical products by conducting a refinery development masterplan program (RDMP) to improve the quality and types of refinery products," added Fadjar.

Pertamina also appealed to the public to use Pertamina products, as domestic products. In retail products, Pertamina's energy distribution access to the public has reached 98% of Indonesia's territory, especially with the BBM 1 Price, One Village One Outlet (OVOO) and Pertashop programs.
 

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