Indonesia’s electrical equipment industry has been one of the country’s fastest-growing export sectors in recent years, recording a compound annual growth rate (CAGR) of 9.5% between 2019 and 2024. Despite a brief slowdown in 2023 caused by global inflation and tighter monetary policies, exports rebounded strongly in 2024, reaching USD 8.3 billion, the highest on record.
Everyday Products, Global Demand
At the heart of this export boom is the growing demand for reliable, affordable electrical equipment. With urbanization and electrification expanding across Asia, Africa, and Latin America, households and businesses are upgrading their electrical infrastructure.
Products like switches, sockets, and MCBs are small components, but they are essential for safe and efficient electricity usage.
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The Middle-Class Effect
Another factor driving demand is the rise of the global middle class. According to the World Bank, by 2030, more than two-thirds of the world’s middle-class consumers will live in Asia. As incomes rise, so does spending on home improvement, appliances, and safe electrical systems. Indonesia’s exports of switches and circuit breakers are benefiting directly from this consumption trend, especially in countries experiencing rapid housing and infrastructure development.
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Looking Ahead
The prospects for Indonesia’s electrical equipment exports remain strong. Demand for household items such as circuit breakers, switches, and sockets will continue to expand, fueled by housing development, electrification, and rising consumer incomes. Beyond household products, the growing shift toward smart homes, renewable energy, and electric vehicles (EVs) presents new opportunities for Indonesian manufacturers to diversify their product offerings.
