Pauwels Trafo Asia to make transformers

Pauwels Trafo Asia to make transformers

BOGOR (JP): Power transformer manufacturer Pauwels Trafo Asia
plans to produce high-voltage 500 kilovolt (kV) power
transformers to benefit from the growing electricity market in
Indonesia and other Southeast Asian countries.

"Once the plan is realized we shall be the only one, not only
in Indonesia but also in Asia, to produce such large equipment,"
company president commissioner Arifin Panigoro said yesterday
during a visit by Belgium's Vice Prime Minister Philippe Maystadt
to the company's production facilities in Cileungsi, Bogor.

Maystadt was accompanied by State Minister of National
Development Planning Ginandjar Kartasasmita.

Arifin said 500 kV transformers were used to transmit power
from a power plant to substations through long distance power
grids. The higher the voltage of a transformer, the less power
lost during transmission.

"The use of 500 kV transformers will reduce power losses
during power transmission through long-distance power networks
such as the Java-Bali power grid," Arifin said.

He said state-owned electricity company PLN had so far
imported such equipment from Austria, France and Germany.

In line with the plan, Pauwels Trafo Asia will send its
workers to Pauwels' production facilities in Canada for two years
of training in the making of the 500kV transformers, added
Arifin.

Pauwels Trafo Asia is 60 percent owned by Belgium's Pauwels
International NV and 40 percent by PT Meta Epsi Engineering. Meta
Epsi is the subsidiary of the Medco Group.

The company currently produces 10-125 MVA/up to 150 kV
transformers with a production capacity of 3,000 MVA a year or 80
units a year.

Company director Syahril Anwar said the company sold 60
percent of its products on the domestic market and exported the
rest to Southeast Asian countries.

Pauwels Group's commissioner Vic Pauwels said yesterday that
Pauwels felt comfortable investing in Indonesia, but he noted
that the company was facing tough competition from imported
built-up transformers on the local market due to the high import
duties it paid on imported raw materials.

He said the company imported about 40 percent to 50 percent of
its raw materials and paid import duties of between 10 percent to
20 percent, as against the 5 percent import duty imposed on
built-up transformers.

"I hope that import duty will be reduced very soon," Pauwels
said.

Sjahril added that aside from import duty, the 10 percent
value-added tax also made their products more expensive than
imported transformers, which are exempted from value-added tax.

"Thus, we have to reduce our price by 10 percent in order to
compete with (sellers of) imported transformers," said Syahril.
(jsk)