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Jakarta, June 23, 2022 – PT Perusahaan Listrik Negara (PLN) (Persero) has conducted a joint research with Lembaga Pembiayaan Ekspor Indonesia (LPEI)/Indonesia Eximbank on the Impact of Electricity Consumption on Export Value and Mapping Priority Sectors. This joint study is a follow-up to the cooperation agreement signed by both parties on August 25, 2021, in Jakarta.
The purpose of this joint research is to map and calculate the electricity capacity needs of regions that produce export-oriented products, especially products from value-added sectors such as 1) food & beverages, 2) wood & furniture, 3) pulp & paper, 4) textiles & textile products, 5) automotive, 6) mechanical & electrical equipment, and 7) footwear.
Based on research involving 827 company samples (data on electricity consumption and exports from exporting companies in Indonesia) from February 2019 to September 2021, it was found that there is a significant and positive relationship between electricity consumption and Indonesia's export value in all seven value-added sectors.
Rini Satriani, Head of the Indonesia Eximbank Institute (IEB Institute) at LPEI, explained, "The regression analysis results show that electricity consumption and sectoral export value have a significant and mutually influential two-way relationship. An increase in electricity consumption, as one of the production inputs, directly leads to an increase in export value. On the other hand, when there is an increase in global demand, the export value will also increase, thus boosting electricity consumption."
Furthermore, Rini Satriani stated that electricity consumption has a positive impact on the elasticity value of the increase in Indonesia's sectoral export value. Some regions in Indonesia even have an elasticity value exceeding one (>1) in relation to the sectoral export value, which means that any additional electricity consumption can drive an increase in the export value of a specific region/sector.
For example, Banten Province has a positive elasticity value of 1.13% regarding the export value of the food and beverage sector (mamin sector) in that region. This means that if there is a 1% increase in electricity consumption in the mamin sector, the export value of the mamin sector will increase by 1.13%. Therefore, the measured elasticity value reflects the importance of electricity as one of the production inputs for export-oriented industries in enhancing Indonesia's sectoral export value, especially in sectors with added value.
Teguh Widhi Harsono, Executive Vice President of Corporate Finance at PT PLN (Persero), commented, "The results of this research prove that a reliable electricity supply can support national economic activities, especially in export-related operations. PT PLN (Persero) remains committed to providing sustainable and affordable electricity services to industrial players, particularly those engaged in exports."
PT PLN (Persero) currently offers programs to enhance electricity supply services, including new connection services (PB), power addition services (PD) with relevant promotions, temporary connection services (PS), reliable and flicker-free electricity services, clean energy sales through Renewable Energy Certificates (RECs), and electric vehicle (EV) charging services. Furthermore, PLN provides the PLN Mobile app to meet customer needs through various online services, including complaint and disruption reporting, PD/PB/PS requests, a virtual showroom, the Iconnet internet service, installation disruption services through listriQu, and an online marketplace.
PT PLN (Persero) and LPEI will continue to collaborate and synergize in joint research efforts to promote Indonesian exports and support Indonesian products to compete in the global market while strengthening the national economic base.
Media Contacts:
Chesna F. Anwar
Corporate Secretary – Lembaga Pembiayaan Ekspor Indonesia
Phone: (021) 39503600
Email: corpsec@indonesiaeximbank.go.id
Website: http://www.indonesiaeximbank.go.id
PT PLN (Persero)
Gregorius Adi Trianto
Vice President Corporate Communications at PLN
Phone: 021 7261122
Fax: 021 7227059
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