Press Release

LED Lighting: Enabling Rural Electrification in Indonesia

October, 2016

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With its recently published study, “Indonesia Light Emitting Diodes (LEDs) Market: Drivers, Opportunities, Trends, & Forecast: 2015–2022”, Infoholic forecasts that, Indonesia’s LEDs market will continue to witness high growth owing to high rate of urbanization, government support, and increasing affordability. The Indonesian market not only faces the low electrification but also has huge power shortages in the domestic market.

LEDs based lighting is seen as a viable option to reduce the burden from existing power source. The government has been strategically changing the government policies and tariffs to promote LED products in domestic market. This has attracted many multinational companies to invest in Indonesian market which is contributing towards Indonesia LEDs market growth. This pattern is expected to continue during the forecast period 2016–2022 to increase Indonesian market at a CAGR of 21.5% reaching $1.85 billion by 2022.


The lighting segment is expected to contribute the highest, most in terms of both, revenue and growth rates, towards Indonesian LED market during the forecast period mostly due to government supporting policies and multinational companies’ investments.

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The Indonesia market is relatively under-industrialized market and the level of economic development is far behind its South Asian developing peers such as China, India, and Thailand. Currently Indonesian market not only has low electricity penetration but also has a huge shortage of power supply in urban areas as well. The government is installing new power plants, but at the same time is also pushing towards new technologies adoption such as LEDs which reduce the power requirements as their electricity requirements vary when compared to traditional light sources such as halogen and incandescent lamps.” – KR Sreenivasan, CEO of Infoholic Research.

Indonesia lags far behind in terms of infrastructure, including electricity supply. Further, the increasing industrial development is adding additional pressure on existing power resources. The government has adopted duel policy of increasing the power capacities and reducing the power requirements in parallel. The government has been changing and altering the policies to promote LED products and enable better utilization of power resources because of the higher efficiency of LED products. These policies have favored companies to import LEDs (chips) from China and other South Asian countries to produce and sell LED products in Indonesia. This trend is expected to continue, however, the majority of LED lighting demand is expected to remain dependent on imports, even by 2022.” – Somnath Das, Senior Consultant of Infoholic Research.

Purchase a copy of  Indonesia Light Emitting Diodes (LEDs) Market – Drivers, Opportunities, Trends, & Forecasts: 2015–2022

Key insights of the report

  • Indonesia’s LEDs market is analyzed application wise

    • Lighting

      • Indoor and Outdoor

      • Bulbs, Street Lights, and Spot Lights

    • Displays and Backlights

    • Mobile Devices

    • Signs & Boards

    • Others (largely automotive)

  • Industry outlook: market trends and drivers, restraints, and opportunities


Mr. Karthick Subramani

Infoholic Research LLP

Marketing & Communication