Electrical Equipment Manufacturers' Challenge: Weakening Rupiah and Surge of Chinese Goods

Jakarta—The Indonesian Association of Electrical Equipment Manufacturers (APPI) is targeting 10-15% business growth for electrical equipment in 2026, supported by government programmes promoting renewable energy development and the rapid expansion of data centres.

APPI Chairman Yohanes Purnawan Widjaja stated that PT PLN (Persero)’s adoption of its 2025-2034 Electricity Supply Business Plan (RUPTL), which targets adding 69.5 gigawatts of generating capacity over a 10-year period, represents significant potential for increased demand for electrical equipment in Indonesia.

However, global economic and geopolitical turbulence, which pressures exchange rates and drives up import logistics costs, presents considerable challenges to the electrical equipment sector. Additionally, the influx of illegal electrical products from China has become a significant competitive pressure on domestic industry.

The dialogue with APPI Chairman Yohanes Purnawan Widjaja explores the prospects and challenges facing the electrical equipment business in 2026 in detail.