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in the midst of global economic contraction, had dampened any worse impact
on the domestic cable industry sector.
Table 2.1.1
Estimated domestic market volume of cable in Indonesia, 2004-2009
( 000 tons)
Year
2004
2005
2006
2007
2008
2009
Production
111.3
133.5
178.0
289.3
402.1
245.0
Import
20.8
36.5
36.0
50.1
85.9
73.8
Export
78.7
77.3
88.2
111.6
111.2
76.4
Market size
53.5
92.7
125.8
227.8
376.8
242.4
Graph 2.1.1
000 tons
2005
Production
2006
Import
2007
Export
2008
2009
Market size
In terms of value, the domestic market of cable has increased sharply from
only around US$ 107.5 million in 2004 to around US$ 1,099 milions in 2006
and reached its peak at around US$ 3,690 million in 2008. However, in
2009, the domestic market value slumped by around 58% to only around
US$ 1,558 million.
PT Data Consult
In the year 2009, beside the declining demand, the shrinking market value
was also caused by reduced sales price, due to lower price of materials
especially copper. The price of copper touched the bottom point of close to
US$ 3,000 / MT in December 2008. The price gradually moved up throughout
2009 in the range of US$ 7,000/ MT in December 2009. Meanwhile, the
lowest price for aluminum occurred in February 2009, close to $1300/MT,
while later also gradually moving up to nearly $2200 at the year end. The
average prices of both commodities were throughout 2009 lower by 35-40%
of the average prices of the year before. The fall in the prices of these main
raw materials also had their share in the drop of the sales value.
Table 2.1.2
Estimated market value of cable in Indonesia, 2004-2009
( US$ million)
Year
2004
2005
2006
2007
2008
2009
Production
430.6
647.7
1,615.3
2,780.0
3,776.2
1,652.9
Import
104.6
217.8
225.5
279.3
877.8
558.8
Export
427.8
505.8
742.0
917.8
962.8
653.4
Market size
107.5
359.7
1,098.9
2,141.5
3,691.2
1,558.3
Growth
234.7
205.5
94.9
72.4
-57.8
Graph 2.1.2
US$ million
3,000.0
2,500.0
2,000.0
1,500.0
1,000.0
500.0
-
2004
2005
Production
2006
Import
2007
Export
2008
2009
Market size
PT Data Consult
2.2.
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Graph 2.2.1
Domestic market value of cable by type of cable, 2009
HV power
3%
Others
2%
MV Power
12%
Fibre optic
17%
Power
cable
68%
Telephone
7%
LV Power
53%
Automotive
6%
Table 2.2.1
The domestic market segment of cable by type of cable, 2010
Type of cable
Market value
( Rp billion)
HV power
381.0
MV Power
LV Power
1,714.6
7,429.8
Sub-total power
Automotive
Telephone
Fibre optic
Others
Total
9,525.4
917
1,048
2,410
306
14,207
Equivalent
In US$ million
42.3
190.5
825.5
1,058.4
101.8
116.5
267.8
34.0
1,579
PT Data Consult
2.2.
The main target market for electric equipment and components are the state
owned Electricity Company, PT PLN which is the main authority of power
generation and distribution in Indonesia. Private generating companies have
also been involved in this sector, but still their role is much smaller than PLN.
In the meantime, the transmission and distribution networks still monopolizes
by PLN.
The PLN market segment constitutes about 39 % of the market
for cable. The other major market segments are residential and buildikng
sectors which contributed around 32 % to the total market value in 2009.
Residential and building sector consumes primarily low voltage cables . While
small residential builders get the supply of cable from retailers , building
developers or their contractors buy the cable from distributors or stockists.
Telecommunication companies particularly PT Telkom and PT Indosat, the
two largest telecommunication service providers in the country are also two
main users of cable. Oil and gas sector is still a small market segment as
confirmed by a number of major cable manufacturers .
Based on interviews with several cable producers and business associations,
the, market share of each segment can be astimated as follows:
Graph 2.3.1.
Market segment by end users, 2009
Others( oil & gas,
manufact)
3%
PLN
39%
Automotive
industry
6%
Telecom providers
20%
Residential and
buildings
32%
PT Data Consult
Source: PLN
At the end of 2008, the installed capacity of the national power system totaled
30,527 MW consisting of 25,451 MW PLN generating plants (83%), 4,159 I0f
PPs generating plants ( 14%) and 916 MW of PPU ( Integrated Private
Power Utilities).
To distribute the energy to the customers, PLN had a total 261,163 kms
medium voltage (MV) networks and 353,762 low (LV) voltage networks.
These lines are only 10% higher than the situation in 2004.
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Table 2.3.2.
Transmission networks by island, 2009
No.
1
2
3
4
5
6
7
Island
Sumatera
Java-Madura-Bali
Kalimantan
Sulawesi
Nusa Tenggara
Maluku
Papua
Indonesia
SUTET
(kms)
782
5,092
5,874
SUTT
(kms)
8,906
15,501
1,429
2,474
28,310
Total
(kms)
9,689
20,593
1,429
2,462
34,184
.
Table 2.3.3.
Existing power distribution networks, by island, 2008
No.
Island
1
2
3
4
5
6
7
Sumatera
Jawa-Madura-Bali
Kalimantan
Sulawesi
Nusa Tenggara
Maluku
Papua
Indonesia
SOURCE: PLN
MV
Networks
(kms)
LV
Networks
(kms)
72,131
128,364
23,695
23,017
7,473
4,484
1,999
261,163
77,431
217,912
21,441
23,795
7,315
2,337
3,531
353,762
Total (kms)
149,562
346,276
45,136
46,812
14,788
6,821
5,530
614,925
PT Data Consult
Table -2.3.4.
Connected power by group of users, 2005-2008
(000 customers)
User Group
Residential
Business
Industry
General
Total
Source: PLN
2005
32.175
1,456
46
882
34,559
2006
2007
2008
33,118
1,655
47
931
35,751
34,685
1,611
47
922
37,334
36,025
1,716
48
1,055
38,844
Connected
Cap. (MVA)
29,335
11,929
14,531
4,291
60,086
Demand for cable for residential and commercial building sectors depends
highly on the development in constructions sectors particularly building
constructions.
The construction sector shows a strong rebound in 2004, as indicated by the
growth of its Gross Domestic Product ( valued at constant price ) of 8.2 % as
compared to only .4.1. % in 2002, 6.4 % in 2003.. In 2008, the growth slightly
declined to 7.34 %.
Based on data of the Indonesian Contractors Association (ICA), the main
market segments
of construction market in Indonesia are, building
construction . The following table presents construction value completed by
members of ICA ( Indonesian Contractors Associations) and the type of
construction works .
Table 2.3.5.
Construction works completed by value
(Rp million)
Type of works
2004
2005
2006
2007
2008*
(1)
(2)
(3)
(4)
(5)
(6)
Building construction
23,377,654
28,197,067
31,374,730
34,612,257
37,312,013
Civil constructions
21,499,912
24,378,724
26,049,107
28,615,500
30,847,509
Building installation
Special
constructions
8,836,706
9,303,702
8,524,699
8,686,315
9,363,847
2,290,266
5,438,426
5,994,773
9,760,901
10,522,252
56,004,538
67,317,918
71,943,309
81,674,973
88,045,621
TOTAL
Source: CBS
Investors in Indonesia are shifting money from low-yielding bank deposits into
real estate in search of higher returns, it has been revealed. The trend is
pushing up property prices in the main cities.
PT Data Consult