Energy Minister Inaugurates Cable Plant in a Bid to Realize Nusantara Grid

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 42.Pers/04/SJI/2022

Date: 26 January 2022

Energy Minister Inaugurates Cable Plant in a Bid to Realize Nusantara Grid

We are committed to ensuring that electricity infrastructure is ready for a surge in electricity demands in the future, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, has said at the inauguration of PT LSAG Cable Indonesia (LSAGI) on Wednesday (26 /1).

"We've made projections that the electricity consumption will increase by 6%-7% annually. For this reason, we need to prepare the infrastructure the best we can," continued Arifin.

As the era of energy transition approaches, electricity infrastructure is part of the preparation to develop the Nusantara Grid, which will connect electricity grids in Indonesia. "We have plans to develop Nusantara Grid in 2050, which will connect electricity grids in Indonesia and optimize the potential of new and renewable energy which is found across Indonesia," Arifin explained.

Arifin went on to say that quality cables must be available in the market because the government has started to promote the development of electricity interconnection systems in order to lift the use of renewables and improve supply efficiency. "The electricity industry must respond to this opportunity, and this cable factory is proof," added Arifin.

In terms of technical aspect, the cables used in the electricity system must be reliable to ensure that electric currents are distributed properly. In terms of economic aspects, the presence of a new factory will create new jobs and help absorb domestic raw materials for cables.

"I hope that, in the future, LSAG Cable Indonesia can make a contribution to the country and ensure that its products are available to support the development of electricity infrastructure, from generation, transmission, to distribution of electric power and electrical installations for residential, commercial, industry, and social buildings," Arifin concluded.

The state electricity utility PT PLN (Persero) in its 2021-2030 Electricity Procurement Plan (RUPTL) has plans to build 494,631 ckms of electricity networks throughout Indonesia until 2030 in a bid to distribute electricity from generation plants to demand locations, interconnect electricity systems for resource sharing, and improve system reliability.

The networks will consists of 47.723 ckms of transmission cables and 446.908 ckms of distribution ones.

Currently, the local contents (TKDN) of electrical cables/wires range from 80%-90% for low, medium, and high voltage cables. Therefore, LSAG Cable Indonesia is expected to maintain the quality of its cable products by taking into account the regulations and product standards applicable in Indonesia and to contribute to the national economy by increasing the use of domestically available raw materials and services.

For the record, PT LSAG is a joint venture between LS Cable & System (LSC&S) and PT Artha Metal Sinergi (AMS). LS Cable & System is a subsidiary of LS Corp., one of the world's largest cable manufacturers which is based in South Korea.

Other state ministers and government officials were present at the inauguration, including Minister of Industry Agus Gumiwang Kartasasmita, Minister of Investment/Head of Investment Coordinating Agency Bahlil Lahadalia, Minister of State-Owned Enterprises Erick Thohir, dan Regent of Karawang Cellica Nurrachadiana. (IY)

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