Indonesia Cable Market Size and Forecast by Cable Type, Conductor Material, Insulation Type, Voltage Range, Installation, and Application: 2019-2033

Indonesia Cable Market Outlook

Indonesia cable market is moving from cyclical construction-led demand to a structurally higher growth curve powered by national electrification goals, data-economy upgrades, and green-energy deployment. As per David Gomes, Manager – Semiconductor, annual revenue is projected to reach about USD 5.58 billion by 2033, implying a 6.4% compound growth rate even after adjusting for currency volatility and metal-price swings. The single largest thrust comes from grid modernisation: the 69.5 GW capacity plan in PLN’s 2025-2034 RUPTL earmarks more than 42 GW for solar, wind, and hydro, forcing utilities to procure over 25,000 km of 150–500 kV XLPE transmission cables and submarine links for inter-island corridors. Wind-turbine clusters in South Sulawesi and floating solar on Cirata reservoir rely on low-smoke halogen-free (LSHF) array cables and MV aluminium conductors capable of 90 °C continuous ratings, a segment local champion PT Supreme Cable projects will double its sales by 2027.

Electric-vehicle industrialisation is the second growth engine. Hyundai-LG’s Karawang battery plant and SAIC-Wuling’s new 150,000-unit EV line together require more than 4,500 km of 600 V shielded charging-station cable and high-flex silicone leads rated for –40 °C to 180 °C; pilot swaps to tinned-copper bus conductors have cut contact-resistance loss by 11% in fast-charge trials. Government VAT rebates for EVs with 40% local content have prompted harness maker Astra Otoparts to announce a USD 45 million extrusion facility for DC fast-charging cable compliant with IEC 62893.

Digital infrastructure magnifies low-voltage and fiber-optic demand. DCI’s JK 6 and JK 7 campuses near Jakarta will push total installed data-centre load beyond 150 MW by 2026, calling for MCM copper busways and thousands of MPO trunk cables factory-terminated in Indonesia to cut latency on 400 GbE fabrics. Microsoft and Amazon, together budgeting more than USD 4 billion for cloud regions, specify “liquid-tight aluminium-armoured power cable” to boost PUE reliability in a humid equatorial climate. Meanwhile, Telkomsel’s plan to blanket 88% of households with fibre-to-the-home by 2028 will require roughly 16 million fibre-pair-kilometres, propelling imports of bend-insensitive optical cable as local fibre draw-tower capacity still trails demand.

Indonesia’s USD 34.7 billion super-grid vision, starting with the 1,680 km Sumatra-Java HVDC link, is a game-changer for domestic cable makers such as Voksel Electric and newcomer PT Hengtong Subsea. Both firms are upgrading sheathing lines to produce steel-wired armoured submarine cables rated at 525 kV, aiming for 60% local content to qualify for government procurement—executives say early tests show tensile strength gains of 14% over imported equivalents. On the telecom side, the SEA-H2X and Echo submarine networks plus the domestic Palapa Ring Timur require dispersion-shifted fibre and repeatered cable that can withstand 8,000 m water depth, underscoring Indonesia’s push to become a regional data-traffic crossroads.

Risks remain: copper prices rebounded 18% in early 2025, squeezing margins; Java’s voltage flicker still averages 1.9%, complicating sensitive semiconductor fab plans; and adherence to ESG norms is under scrutiny after a 2023 audit flagged unsafe lead compounds in legacy building wire. Yet policy momentum is strong—new SNI standards mandate halogen-free insulation for public buildings by 2027, and Bank Indonesia’s green-bond taxonomy unlocks cheaper capex financing for “Grid, Cable & Conductor” categories. “Cable reliability is the linchpin of Indonesia’s energy and data transition,” says Rachmat Hidayat, CTO of PLN’s transmission division. “Without domestic innovation in XLPE and fibre, project risk—and hard-currency outflow—both spike.” His view is echoed by Nurul Anwar, COO at Voksel, who notes that next-gen nanoceramic semiconducting screens have cut partial-discharge rates by 30% in 150 kV trials, a breakthrough for tropical-climate performance.

For suppliers and investors, strategic priorities include scaling high-voltage extrusion, localising optical-fibre drawing, and aligning with carbon-footprint reporting that key EPC contractors now require. Integrating downstream harnessing and on-site termination services will also be decisive as data-centre and EV OEMs demand turnkey cable-assembly logistics inside Indonesia’s special economic zones.

Authors: David Gomes (Manager – Semiconductor)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Indonesia Cable Market Scope