New Era of Lighting Has Come
Few years ago, the demand of LED (light emitting diode) had not yet significantly risen due to its price competitiveness. Energy Saving Lamp (LHE) was much preferred by domestic market and large switching cost from LHE to LED was just another obstacles for consumer to consider. Energy saving lamp has various prices starting from USD 2.1 - USD 3.6, depends on the power capacity from each lamp.
Source: Various, Processed by PT. Invisindo
At present, LED lamp sought by Philips is offered around USD 13 - USD 19 per piece, still the switching cost remains high, around 4-6 times higher than conventional energy saving lamp (read: CFL based). Chairman of Aperlindo (Indonesia's Electric Lamp Producers), John Manoppo said Indonesia's is starting to switch to LED for the lighting as he predicted the demand of LED could reach 15 million units.
Capability of Local Producers
LED lamp has way sophisticated technology emphasizing on green environment and durability. LED lamp is claimed to save energy up to 80% and last for 25 years without replacement. At present, there have been 4 local companies that producing LED lamp known as PT. Sinar Angkasa Rungkut with the brand Chiyoda, PT. Pancaran Indonesia Tangerang with the brand Cahaya, PT. Sure Indonesia with the brand Kunang and PT. Sentosa Elektri with the brand KEIBU.
Chiyoda, a LED lamp produced by Sinar Angkasa Rungkut is likely to be offered with USD 2.5 to USD 5 per piece with production capacity of 12,500 pieces per day. The lower the switching cost, the higher possibility to establish economic of scale for LED lamp. As Philips is offering its LED lamp of USD 13 - USD 19, price competitiveness would set as the main driver to the competition of LED lamp's market in Indonesia.
Chiyoda, a LED lamp produced by Sinar Angkasa Rungkut is likely to be offered with USD 2.5 to USD 5 per piece with production capacity of 12,500 pieces per day. The lower the switching cost, the higher possibility to establish economic of scale for LED lamp. As Philips is offering its LED lamp of USD 13 - USD 19, price competitiveness would set as the main driver to the competition of LED lamp's market in Indonesia.
Local content of the LED lamp has reached 65% and the remaining are still imported. Glass tube has been able to be produced by local manufacturer and the remaining components are still highly dependent on import product. According to John Manoppo, manufacturers are starting to enter the new era of LED lamp just what energy saving lamp had shown when it was introduced in 2002 and at present, CFL / Energy Saving Lamp leads the lighting market in Indonesia.
HS Code is Underway
To date, Indonesia's government has not yet assigned significant HS Code for LED lamp, its still classified as Energy Saving Lamp which its import tariff is imposed around 15%-25%. Thus, number of LED import remains not traceable. The domestic consumption of LED is predicted around 2 million units until first half of 2013.
John Manoppo added that Indonesia's government would protect the local industry by imposing import scheme plan for LED lamp to 15%-25%. Thus, it is expected that industrialization of LED lamp will gain benefit to self produce LED lamp instead of importing this product with 25% import tariff and eventually would boost an investment opportunity for LED lamp for global and local investor to meet with annual market size of 15 million units of LED lamp in Indonesia.
HS Code is Underway
To date, Indonesia's government has not yet assigned significant HS Code for LED lamp, its still classified as Energy Saving Lamp which its import tariff is imposed around 15%-25%. Thus, number of LED import remains not traceable. The domestic consumption of LED is predicted around 2 million units until first half of 2013.
John Manoppo added that Indonesia's government would protect the local industry by imposing import scheme plan for LED lamp to 15%-25%. Thus, it is expected that industrialization of LED lamp will gain benefit to self produce LED lamp instead of importing this product with 25% import tariff and eventually would boost an investment opportunity for LED lamp for global and local investor to meet with annual market size of 15 million units of LED lamp in Indonesia.
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