Statistics Show Indonesia Holds Great LED Market Potential

Indonesia is situated in Southeast Asia and is located on the Equator. It is close to Papua New Guinea, East Timor and borders Malaysia. Geolocation wise the world’s largest archipelago is also an ocean across from Thailand, Singapore, Philippines and Australia. With a population of 240 million people scattered across 18,307 islands, Indonesia is the fourth most populated country in the world following China, India, and U.S. Annual economic growth rates peaked to 6.3% over the past few years indicating it is a country that holds great market potential.

According to Asian Development Bank’s new report “Asian Development Outlook 2015,” Indonesia’s economic growth is projected to reach 6.6% in 2014, setting a new record high for the past 15 years. Rich in natural resources, Indonesia is a major global raw material supplier, and its economic growth over the past five years reached an average of 5% to 6%. However, the country has very weak industrial infrastructures, and low-level technology. Hence, the country’s industrial products largely rely on imports.

Indonesia is increasing the penetration rate of the country’s electricity power, and increasing its exports. Energy deficiency is a huge problem in the country that has less than 60% energy penetration, and 40% of its 250 million population living in darkness. Blackouts and power rationing even occurs in the country’s main capital Jakarta.

The Indonesian government recently announced plans of becoming 100% energy self-sufficient within the next five years. Despite power shortages and blackouts in some rural areas, 84% of the areas now have access to steady power supplies. The Indonesian government aims to reach an energy self-sufficient rate of 75% by 2015, and supply solar-powered lighting equipment to rural areas. Other government promotions urge investors to increase investments in power related fields.

Following rising investments in power systems, and spreading global environmental awareness, the Indonesian government has encompassed the lighting industry as a method to move the country’s environmental energy saving policies on track. Besides promoting the usage of LED lights in public construction projects, the lights are also applied in commercial and transportation lighting applications.

LED luminaire amounts for only 10% lighting industry sales in the country, according to statistics compiled by The Indonesian Electrical Lighting Industry Association (Aperlindo), and has great future market potential. Sales of CFL tubes and bulbs reached 320 million, but the country only manufactures 20% of these bulbs. About 80% of the country’s CFL products are imported. Chinese lighting products exported to Indonesia exceeded US 20 million during first quarter of 2015, according to statistics compiled by China’s customs.