Expanding your Solar Business in Southeast Asia’s Largest Market!

The 3 days main industry event (in integrating with 4th Indonesia Building Mechanical & Electrical Expo and Indonesia Smart Building Smart City) is set to display full spectrum of products, technology, energy efficiency,and solutions for home, city, and building.

PV Rooftop Markets in Indonesia

In partnership with Indoensia Solar Associaiton (ISA/AESI), Indonesian Solar Module Manufacturer Association (APAMSI), Indonesian Luminaire Association (ALINDO), Indonesia Electrical Lighting Industry Association (APERLINDO), Indonesian Mechanical & Electrical Contractor Association (AKLI), Indonesia Building Engineers Association (BEA). Indonesia SOLAR Energy Expo 2018 is the biennial trade fair for companies in the Energy efficiency industry to grow their business in Indonesia and Southeast Asia. The 3 days main industry exhibition with parralel conference and seminar (co-located with Indonesia Indonesia Building Mechanical & Electrical Expo and HVACR & Energy Efficiency Expo) is set to display key technology, equipment, and services for solar energy, home & building mechanical electrical and automation, and energy efficieny solutions.

Indonesia is the Southeast’s biggest and most attractive market and considered one of the next economics giant. Economic projections estimate the country will leap ahead of Germany and the UK to become the world’s 7th largest economy by 2030 Indonesia has 10 times more solar power potential than Germany, Japan, and USA. The National Energy Policy targets that by 2025 the national energy mix of 23 percent will come from renewable energy. In fact, the ESDM Ministry has an ambitious target implementation of PLTS of 6.4 GWp by 2025.

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Industry Overview

"It is expected that the number of skyscrapers in Jakarta to double by 2018 as developers tap into the booming demand for property. And within the next 5 - 10 years, Jakarta will be among the top of 20 ASIA City."

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Ambitious deadlines and increased green building standards make efficient building management central in Indonesia. Growing population, rapid urbanization, and increased disposable income are credited by the report as propelling a rise in construction market value from USD102,64in 2017 to USD 136,26bn by 2021, thereby exhibiting a CAGR of 7,34%, in value terms, during 2017-2021. As well as presenting a variety of upcoming projects that will take advantage of increased market performance, the report highlights key building technologies and standards that are developing within the boom.

Listed projects include the national toll road project, national railway projects, and ventures in the energy and waste management sectors. Benefiting from the excelling market, these construction projects come hand in hand with tight deadlines; one of which is the five-year plan to construct 1 million houses across the country.
Government investments in transport infrastructure, energy and utilities construction and residential buildings will contribute to this growth. Moreover, the National Development Program 2025 and National Affordable Housing Program will also support industry growth.

In January 2018, the government announced a plan to spend IDR105.4 trillion (US$7.6 billion) to build 17 toll road projects Under the National Strategic Project by the end of 2019. Moreover, under the third phase (2015-2019) of the National Development Program 2025, the government plans to invest IDR4.8 quadrillion (US$360.6 billion) on the development of transport and other infrastructure by the end of 2019. The government is also intending to introduce a Limited Concession Scheme (LCS) for private partners to finance large infrastructure construction projects.
In March 2018, the Ministry of Energy and Mineral Resources approved Rencana Umum Penyediaan Tenaga Listrik (RUPTL) 2018-2027, a ten-year electricity supply business plan. According to RUPTL, electricity demand in the country is projected to increase by 8.6% annually, going from 216.8TWh in 2016 to 457.0TWh in 2025. PT Perusahaan Listrik Negara (PLN), the state-owned power company, estimates that IDR2.0 quadrillion (US$153.7 billion) in capital investment will be required to develop the country's electricity system by 2027.

Timetric expects the residential construction market output to record a forecast-period CAGR of 8.41% in nominal terms, driven by the government's plans to build affordable houses for low- and middle-income households. The government plans to build one million social houses with an investment of IDR66.8 trillion (US$5.0 billion) by 2019. In addition, the government is providing subsidies to low- and middle-income people to buy houses. In 2017, the government announced plans to provide IRD14.6 trillion (US$1.1 trillion) of subsidies to low income families.
Under the National Energy Policy, the government aims to increase the share of renewable energy in the total energy mix from 12.6% in 2017 to 23% in 2025, 25% by 2030 and 31.0% by 2050. Accordingly, the government plans to increase the country's geothermal power generation capacity from 1.8GW in 2017 to 5.0GW by 2025. Moreover, the government plans to build 16 wind power plants by 2024.
ndonesia's construction industry is growing rapidly with growth expected to reach an average of 6.9 percent per year between 2017 and 2021. Of the more than four million buildings in Indonesia around 1,227 buildings are in Jakarta. Nevertheless, only 140 buildings or 0.035 percent, which have green building certification (green certified buildings). Meanwhile, the government needs funds of US $ 423 billion (Rp.5,557 trillion) for the construction sector. On the other hand, Indonesia has planned to reduce greenhouse gas emissions by 29 percent by 2020, by making firmer regulations for the construction industry as a hope to improve sustainable construction. This shows Indonesia's potential that needs to be utilized to make cities green.
Indonesia's construction market this year is projected to reach Rp 451 trillion, up 3% compared to last year. This amount exceeds other neighboring countries such as Malaysia which only has potential worth US $ 32 billion and Singapore worth US $ 24 billion. Based on BPS and the Ministry of PUPR database, the construction market figure has increased by 3% compared to 2017. The total construction project market in 2018 is predicted to be Rp. 451 trillion, 65% is civil works and 35% is building or building work.
The elevator market in Southeast Asia is at the growth stage. Of the four countries covered in the study, Thailand led the elevator demand in Southeast Asia by revenue and market share. This is followed by Indonesia, Vietnam, and the Philippines.
Suppliers of building materials are in a prime position to capitalise on Indonesia’s booming real estate market and rising investment in infrastructure. The construction sector has outpaced Indonesian GDP growth in recent years and plays an increasingly important role in the country‘s economy.
With its reliance on the domestic market and government-funded projects, the building materials sector should prove relatively insulated from global economic risks. While the threat of localised overheating in the property market must not be overlooked   Read More
Solar energy is another area of untapped potential within Indonesia’s renewable energy portfolio. As a tropical country, the sun offers huge energy potential of 532,579 MW but to date, Indonesia only derives 16 MW from solar power
Jakarta - Indonesia is still importing 250 million units of energy saving lamp (LED) throughout 2012 from the total demand for LED reach 320 million units.   Read More
The company from Japan CBC Group engaged in solar roofing business by cooperating with local company PT Utomodeck, began to target the industrial segment in Surabaya and East Java.
Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan targets 255,250 solar panels installed in 3T (outer, outer and inferior) islands by 2018.   Read More

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