Indonesia Electrical Materials Market Segmented By Type (Circuit Breakers, Light Switches, Plugs & Sockets, Voltage Switcher, Cable Management, Cable Duct, Electrical Conduit, Others), By End User (Industrial, Commercial, Domestic), By Region, Competition, Forecast & Opportunities, 2031

Indonesia Electrical Materials Market was valued at USD 1832.46 million in 2022 and is anticipated to project robust growth through the forecast period, registering a CAGR of 13.02% through 2031. Electrical materials are essential parts and components required in any building projects in order to connect residential, commercial, and industrial structures to an electrical power source. Electrical components can range in size from a household circuit to a large industrial facility. These materials should have as little electrical conductivity as possible. They are used to make conductors for all kinds of windings found in electrical gear, apparatus, and devices in addition to being used for the transmission and distribution of electrical energy.

Growth of Construction Infrastructure

The need for electrical materials is growing as Indonesia's infrastructure development is growing. The development of infrastructure for several building projects, including the new capital city in Borneo and the F1H2O facilities at Lake Toba, necessitates the usage of different electrical materials, such as switches, plugs & sockets, circuit breakers, etc. In addition, the Indonesian government has been promoting fresh reforms and laws in an effort to stimulate the economy through the development of various infrastructure. According to Indonesia's 2022 budget, the Indonesian government has allocated more than USD 26 billion for the expansion of infrastructure, including building six new airports, more than 6,000 kilometres of rail lines, and an irrigation system covering more than 100,000 hectares. Moreover, the expansion of setup facilities and installations has allowed the service provider to expand production and launch new electrical materials goods in the market. As a result, the market for electrical materials in Indonesia is seeing strong growth due to the expansion of the building infrastructure.

Bolstering Growth of Electric Vehicles

Indonesia is essential to the country's efforts to electrify its transportation. Indonesia, the largest economy in Southeast Asia, is gradually becoming known as a leading manufacturer of electric vehicles (EVs). 13 million electric motorcycles and 2.2 million electric cars are expected to be produced by 2030. This acceleration of growth will make it easier for suppliers of electrical materials to satisfy demand for items such as switches, power plugs, cable ducts, and so on. Furthermore, the nation is dedicated toward playing a key role and developing into a crucial component of the supply chain for the world's battery production since it is home to 22% of the world's plentiful nickel deposits. Moreover, the development of EV charging infrastructure and numerous government subsidies, tax breaks, and incentives, as well as national agendas such as the National Medium-Term Plan (RPJMN) 2020-2024 and the National Masterplan for Industry (RIPIN) 2015-2035, are supporting both the suppliers and consumers of EV goods as well as the production of electric raw materials. Therefore, the growth of electric vehicles is driving the Indonesia Electrical Materials market.

Growth in Renewable Energy & Infrastructure

Although Indonesia is the world's fourth-largest producer of coal and the world's top exporter of the fuel, the government has been supporting renewable energy to lessen its reliance on fossil fuels. In Indonesia, there is a growing need for and potential for renewable energy. Moreover, as Indonesia accounts for 40% of the region's energy consumption, the country's demand for energy is predicted to increase by 80% by 2030, which is the highest pace of growth in the world. Moreover, Indonesia has a lot of potential for renewable energy sources including geothermal, solar, wind, hydropower facilities, biomass, and more. By 2025, the Indonesian government intends to use renewable energy sources to meet 23% of its domestic energy needs. This goal was set in order to minimize greenhouse gas (GHG) emissions and reach carbon neutrality by the year 2060. The National Grand Energy Strategy (GSEB), the PLN Electricity Development Plan, and other government initiatives have helped to build new on-grid NRE capacity. These initiatives, combined with an increase in the setup facilities and installations of renewable energy infrastructure, have also allowed the service provider to increase the production of electrical material. Hence, the growth in renewable energy & infrastructure is offering robust opportunities in the Indonesia electrical materials market.

Recent Developments

• According to Indonesia's 2022 budget, the Indonesian government has allocated more than USD 26 billion for the expansion of infrastructure, including building six new airports, more than 6,000 kilometers of train lines, and an irrigation system covering more than 100,000 hectares.
• The Indonesian government stated in February 2023 that in the coming years planned to establish rooftop solar power plants (PLTS) and solar public street lighting infrastructure (PJU-TS) for homes and government buildings in southwest Papua region to maximize the usage of renewable energy sources.

Indonesia government rising policies & regulations

The government is implementing several strategies under "Making Indonesia 4.0" and "Make in Indonesia" programs to promote and support the development of domestic enterprises and increase the export of electrical and electronic products in the industry in an effort to strengthen the nation's domestic SMEs. Also, the Indonesian government has approved a number of legislative initiatives to draw in more than USD 50 billion in foreign investments over the course of a decade through the Special Economic Zones (SEZ) incentive package.

Challenges

The high attrition rate of skilled professionals in most manufacturing industries is one of the biggest issues that businesses in Indonesia's electrical materials market must deal with. An essential role in Indonesia's economic system is played by the electrical and electronics (E&E) sector. In addition, with 136 million employees, Indonesia has the biggest work force in ASEAN, and only 55 million of them are skilled. The Master Plan for the Acceleration and Expansion of Economic Development in Indonesia (MP3EI) estimates that by 2030, Indonesia would need 113 million competent workers to keep the economy in balance. In Indonesia, approximately 41% of the work force has finished basic education, showing a severe shortage of skills that is impeding economic progress. In addition, the informal sector employs the majority of the workforce in the nation. As a result, a lot of programs for vocational training do not fill market gaps in industry demands. In spite of this, there are still extremely few skilled workers in the sector. Hence, the lack of skilled workforce is anticipated to obstruct the growth of the electrical materials market in Indonesia.

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Market Segmentation

The Indonesia Electrical Materials market is divided into type and end user. Based on type, the market is divided into circuit breakers, light switches, plugs & sockets, voltage switcher, cable management, cable duct, electrical conduit, and others. Based on end user, the market is further segmented into industrial, commercial, and domestic. The market analysis also studies the regional segmentation to devise regional market segmentation, divided among

Company Profiles

PT Trias Indra Saputra,