Strategic Alliance Policy to Improve Competitiveness

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INTRODUCTION

The increasing number of population in Indonesian, inevitably triggering the increasing number electricity demand. Electricity becomes principal things in various sectors, ranging from the fulfillment of household needs until supply to the industrial sector. This is an interesting thing which become the trigger of the economy of Indonesia and becomes one of the factors to attract investors to invest their money in Indonesia. Indonesian economy shows increasing growth rate. Indonesia will take an advantage of economic growth to reach 6.5%. In terms of competitiveness, according to the global competitiveness index (GCI) 2012, Indonesian level scored rank 50 out of 144 countries. Even though this data shown to decrease if compared with GCI 2011, which ranked at 44.

According to the statistical report of PT. Perusahaan Listrik Negara (PLN) (owned state electricity company) 2011, the development of national electricity was affected by national economic growth. National growth reached 6.5%, and it was triggering the growth of electricity demand approximately 9.8%. The average growth of the electricity demand in the next ten years is predicted around 9.2% per year. The greatest electricity demand growth estimated to occur in the eastern Indonesia which reaches 10.6% per year, in the western Indonesia 10.2% while Java-Bali electricity system is predicted 8,97% per year. Whereas in the distribution to customers, it is estimated in the next ten years there will be an increase of customers as many as 25.9 million customers.

In addition to be good news for Indonesia, the economic growth and national stability are also the readiness signal to settle and to prepare for the growth and competition further. It takes a good strategic planning in the fulfillment of the future needs, including in terms of the fulfillment of the national electricity supply.

To get rapid increasing of installed capacity power plant in Indonesia, the Indonesian government via state owned electricity company (PLN) built 10.000 MW power plant scattered throughout Indonesia. This project is issued on Presidential Decree No 71 Year 2006. Almost of power plant is built by China contractor, using Chinese engineering standard and almost of the component is imported from China. In the other hand, the Indonesian government by Presidential Decree No 28 Year 2008 about Industrial Policy also states that the local content in industrial like Power Plant must be increased. In addition, the Ministry of Industry also issued a policy for the determination of minimum Domestic Component Contained (TKDN) for electricity project in The Ministry Regulation No.

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