Flexible AC Transmission System Market in Indonesia

Flexible AC Transmission System in Indonesia Trends and Forecast

The future of the flexible AC transmission system market in Indonesia looks promising, with opportunities in the utility, renewable, industrial, and railway markets. The global flexible AC transmission system market is expected to reach an estimated $2.7 billion by 2031, with a CAGR of 7.9% from 2025 to 2031. The flexible AC transmission system market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are an expansion of transmission lines, an increasing need for STATCOM devices to regulate voltage, and escalating integration of renewable energy into power grids.

• Lucintel forecasts that, within the generation category, the second generation will remain the larger segment over the forecast period.
• Within the end use category, utility will remain the largest segment over the forecast period.

Emerging Trends in the Flexible AC Transmission System Market in Indonesia

Indonesia is increasingly embracing Flexible AC Transmission Systems (FACTS) to overcome grid instability, improve power quality, and facilitate the integration of renewable energy sources. As the nation transitions toward smart grid technology, solutions for FACTS play a crucial role in increasing the resilience of the grid, minimizing transmission losses, and regulating voltage fluctuations. The following are five emerging trends that are revolutionizing the FACTS market in Indonesia, providing solutions to present issues as well as future energy requirements.

• Renewable Energy Integration: Indonesia is shifting towards renewable energy, and the government targets 23% of the energy mix from renewable sources by 2025. FACTS technologies like STATCOM and SVC are critical in harnessing these renewable energy sources as intermittent power inputs to the grid. FACTS systems, with reactive power compensation and voltage regulation, stabilize the grid and guarantee the smooth supply of renewable energy. As renewable generation increases, FACTS technologies are increasingly becoming an essential facilitator of a flexible and secure power system.
• Smart Grid Development: The development of smart grids in Indonesia continues to be another significant trend for the FACTS market. Smart grids use advanced metering infrastructure and automation to improve grid management. FACTS devices like static VAR compensators and dynamic line rating systems are central to providing real-time control of power flow, supply-demand balancing, and grid responsiveness improvement. With Indonesian modernization of its grid, the use of FACTS systems will play a vital role in establishing a smarter, more efficient energy infrastructure.
• Grid Stability and Power Quality Improvement: Grid stability is a significant issue in Indonesia, particularly with the increasing industrial demand and interconnectedness of diverse power sources. FACTS solutions enhance voltage stability, minimize losses in power, and provide uniform power quality throughout the network. The greater dependence on FACTS systems enables the reduction of voltage sags, surges, and frequency imbalance, thus enhancing system reliability. This trend is likely to expand as industrialization and urbanization continue to grow energy demands.
• IslandsÄX%$%X interconnection and cross-border power trading: Indonesian sprawling archipelago is a formidable task for power delivery. FACTS technologies play a crucial role in enabling inter-island power transfer and grid stability. Through effective cross-border power exchange, FACTS systems support regional energy equilibrium and maximize power flow between islands. As increasing emphasis is being placed on energy security and efficiency, FACTS will increasingly play a critical part in controlling long-distance power transfer across Indonesian islands and other neighboring nations.
• Electric Vehicle (EV) Infrastructure Support: The growth of electric vehicles (EVs) in Indonesia is fueling the need for reliable and efficient charging facilities. FACTS technologies enable power flow management and voltage stability at EV charging stations. Preventing grid overloading and ensuring a reliable power supply, FACTS systems will aid the expansion of EV infrastructure. As Indonesia seeks to expand its EV fleet, FACTS solutions will be instrumental in meeting the increasing demand for EV charging and maintaining grid reliability.

Indonesian FACTS market trends signal growing significance for such technologies to support grid stability, improve power quality, and facilitate the interconnection of renewable sources. FACTS systems are redefining Indonesian power grid, becoming more responsive to escalating demands, developing smart grid facilities, and hosting electric vehicles. As development gathers pace, FACTS will be ever-important to facilitate Indonesian sustainable transition to energy and strengthen grid dependability.

Recent Developments in the Flexible AC Transmission System Market in Indonesia

Indonesian Flexible AC Transmission System (FACTS) market is seeing tremendous developments, fueled by government efforts to enhance grid infrastructure and address increasing energy needs. The developments are aimed at upgrading the grid, adding renewable energy, and improving grid reliability throughout the country. With Indonesia undertaking an ambitious energy transition, these recent developments in FACTS technologies play a vital role in enabling the countries changing energy requirements. The following are the most recent developments in Indonesian FACTS market.

• Increased Investment in Renewable Energy Integration: The Indonesian government has made a commitment to increasing the percentage of renewable energy in its energy mix, and this is stimulating the uptake of FACTS technologies. Equipment such as STATCOMs and SVCs is increasingly being utilized to incorporate renewable sources such as wind and solar into the grid. These systems offer reactive power compensation, maintaining stable voltage levels and avoiding the variations created by the variability of renewable energy generation. As renewable energy resources grow, FACTS systems will remain critical in improving grid stability and enabling a greener future for energy.
• Growth of Smart Grid Infrastructure: Indonesia has been enhancing its power grid infrastructure to improve grid efficiency and minimize losses. FACTS solutions, such as dynamic voltage regulation and power flow control devices, are essential parts of this smart grid modernization. Through their provision of real-time monitoring and control, these systems maximize grid performance, minimize congestion, and avoid power outages. With Indonesia on its way towards a fully integrated smart grid, FACTS will be at the center of enhancing energy management and ensuring smooth grid operation.
• Creating Cross-Border Power Transmission: Indonesian strategic interest in regional energy integration is fueling the requirement for a stable power transmission throughout its islands and with neighboring nations. FACTS systems play a key role in improving the stability of long-distance power transmission and effective cross-border power trading. With the application of technologies such as phase-shifting transformers and HVDC systems, Indonesia can improve its power flow, grid reliability, and energy security throughout its islands and with nations such as Malaysia and Singapore.
• Electric Vehicles (EV) adoption: Indonesian momentum towards electric mobility is driving the creation of a strong EV charging network. FACTS technologies are increasingly being utilized to facilitate EV charging stations, protecting the grid from being overwhelmed by the added demand for electricity without loss of stability. FACTS systems regulate power flow to charging stations in such a manner that grids are not overloaded and efficient charging is facilitated. With the increasing adoption of EVs, FACTS solutions will increasingly facilitate the incorporation of electric mobility into the energy framework.
• Support by government policy for grid modernization: The government of Indonesia has enacted various policies for improving the countries grid infrastructure, with the emphasis on improving reliability, lowering losses, and incorporating renewable energy. FACTS systems are aided by these policies so that utilities invest in required technologies to make the grid optimal. With constant government initiatives, the use of FACTS technologies will grow, adding to the overall modernization of the power industry.

Recent advancements in Indonesian FACTS market demonstrate the countries emphasis on integrating renewable energy sources, upgrading to smart grid technology, and power transmission in the region. These advancements reflect the pivotal position that FACTS technologies hold in upgrading grid stability and complementing the countries energy transformation. As Indonesia modernizes its energy sector further, FACTS solutions will be at the center of streamlining grid performance, enabling renewable energy integration, and guaranteeing electricity supply reliability nationwide.

Strategic Growth Opportunities for Flexible AC Transmission System Market in Indonesia

The Indonesian Flexible AC Transmission System (FACTS) market is poised for growth as the country faces an increasing need for a more flexible, reliable, and modern power grid. FACTS technologies support efficient grid management, integration of renewable energy sources, and mitigation of instability challenges. As Indonesia moves toward a more sustainable and resilient energy future, these systems offer strategic opportunities across multiple applications. Below are five key growth drivers shaping the Indonesian FACTS market, each with the potential to enhance grid efficiency and stability.

• Renewable Energy Integration: Indonesia has set ambitious renewable energy targets, aiming to derive 23% of its energy mix from renewables by 2025. Integrating renewable sources such as solar and wind into the grid presents operational challenges. FACTS solutions like STATCOMs and SVCs offer voltage regulation and reactive power support, ensuring smoother integration of variable energy sources. These systems help mitigate issues like voltage instability and frequency fluctuations, enhancing the reliability of renewable energy adoption and supporting Indonesia’s clean energy transition.
• Smart Grids and Grid Modernization: The Indonesian government is investing in smart grid technologies to upgrade its aging power infrastructure and improve reliability. FACTS devices are crucial to this modernization effort, providing advanced capabilities for power flow control, voltage management, and grid stabilization. By integrating these systems into the evolving grid, Indonesia can reduce transmission losses, optimize electricity distribution, and support more adaptive and intelligent grid operations in line with its long-term energy strategy.
• Cross-Border Power Trading: Indonesia is exploring regional energy cooperation and interconnection with neighboring countries as part of ASEAN power grid initiatives. FACTS technologies play a vital role in enabling efficient and stable cross-border electricity exchange. Devices such as phase-shifting transformers help manage interconnection power flows and improve voltage control across national boundaries. These systems support regional energy security and create opportunities for Indonesia to trade power efficiently, benefiting from surplus or cheaper electricity in neighboring markets.
• Electrification of Rural and Remote Areas: Providing reliable electricity to Indonesia’s archipelagic rural and remote regions remains a key challenge. FACTS devices enhance voltage stability and support the integration of decentralized generation systems such as solar microgrids in these areas. By ensuring consistent power quality and enabling the connection of small-scale renewables, FACTS systems play a critical role in rural electrification efforts. This contributes to national goals of expanding electricity access and improving socio-economic conditions in underserved communities.
• Electric Vehicle Charging Infrastructure: The rapid rise in electric vehicle (EV) adoption in Indonesia is increasing demand for robust charging infrastructure. FACTS technologies are being integrated into EV charging networks to maintain voltage stability and manage power flow during peak demand periods. These systems help reduce grid stress, improve charging efficiency, and support the broader deployment of EVs. As Indonesia expands its EV market, FACTS will be essential in building a charging network capable of handling large-scale electricity loads without compromising grid reliability.

The growth potential of the FACTS market in Indonesia is being shaped by the country’s pursuit of grid modernization, renewable energy integration, cross-border power collaboration, rural electrification, and EV infrastructure development. These trends are transforming Indonesia’s power grid into a more flexible, efficient, and resilient system. As the nation continues its journey toward sustainable and inclusive energy access, FACTS technologies will be indispensable in ensuring grid stability and supporting future energy needs.

Flexible AC Transmission System Market in Indonesia Driver and Challenges

The Indonesian Flexible AC Transmission System (FACTS) market is influenced by a range of drivers and challenges that span technological, economic, and regulatory domains. As Indonesia continues to strengthen its energy infrastructure, these factors will shape the deployment and evolution of FACTS technologies. While key drivers include advancements in technology, supportive government policies, and growing energy demand, the market also faces challenges such as high implementation costs, grid complexity, and regulatory inconsistencies. Below are the main drivers and challenges impacting the FACTS market in Indonesia.

The factors responsible for driving the Flexible AC Transmission System market in Indonesia include:
• Technological Advancements: Recent developments in FACTS technologies—such as Static VAR Compensators (SVCs), Static Synchronous Compensators (STATCOMs), and Thyristor-Controlled Series Capacitors (TCSC)—are improving grid stability, managing power flows more efficiently, and facilitating the integration of renewable energy. These systems reduce voltage fluctuations, support dynamic power transmission, and help address rising electricity demand. As technological efficiency improves, FACTS solutions are becoming increasingly viable for wide-scale deployment across Indonesia’s power grid.
• Government Policies and Regulatory Support: The Indonesian government has taken significant steps toward modernizing its electricity grid and expanding renewable energy integration. National programs supporting energy transition, electrification of remote regions, and renewable energy development align with the deployment of FACTS systems. Policies encouraging investment in grid infrastructure, such as through the National Electricity Master Plan (RUKN) and renewable energy incentives, promote the adoption of FACTS as critical enablers of a more resilient and efficient power network.
• Rising Energy Demand: Driven by rapid urbanization, industrial growth, and rural electrification efforts, Indonesia’s energy consumption is increasing steadily. This growing demand places pressure on the national grid to deliver reliable and stable power. FACTS devices are instrumental in managing load variations, enhancing transmission capacity, and minimizing system congestion. As demand continues to rise, FACTS technologies offer a scalable solution to maintain grid reliability and performance.
• Integration of Renewable Energy: Indonesia’s target to achieve 23% renewable energy in its national energy mix by 2025 requires the large-scale integration of intermittent sources such as solar and wind. These variable energy sources create challenges for grid stability. FACTS systems provide real-time voltage control, reactive power compensation, and frequency support, making them essential for maintaining stability and enabling effective renewable integration across diverse geographic regions.
• Energy Efficiency and Sustainability Goals: Indonesia’s commitment to improving energy efficiency and reducing its carbon footprint supports the use of grid-enhancing technologies like FACTS. By reducing transmission losses, optimizing power flow, and enhancing grid reliability, FACTS systems contribute to the national sustainability agenda. Their ability to support clean energy deployment and reduce operational inefficiencies makes them a key component in building a greener, smarter power system.

Challenges in the Flexible AC Transmission System market in Indonesia are:
• High Initial Investment Costs: The substantial upfront costs required to implement FACTS technologies remain a significant barrier, especially for state-owned utilities and regional grid operators with limited budgets. Despite the long-term benefits, such as reduced losses and enhanced grid performance, the initial capital required is often prohibitive. Overcoming this challenge will require financial incentives, public-private partnerships, and access to concessional financing to encourage broader adoption.
• Complex Grid Integration: Integrating FACTS systems into Indonesia’s existing grid infrastructure presents logistical and technical challenges. The national grid is spread across thousands of islands with varying voltage levels and degrees of infrastructure development. Coordinating the deployment of FACTS devices with existing transmission assets and control systems requires detailed planning and advanced system engineering. These complexities can slow implementation and raise integration costs.
• Regulatory and Policy Challenges: Regulatory inconsistency across regions in Indonesia poses a barrier to the widespread deployment of FACTS technologies. Different provinces may follow varying standards and approval processes, which complicates the establishment of a unified national framework. Lengthy bureaucratic procedures and unclear compliance requirements can also delay project timelines. Addressing these regulatory challenges through standardization and policy streamlining will be essential to enable the smooth scaling of FACTS adoption.

The Indonesian FACTS market is supported by key drivers such as technological innovation, government policy backing, growing power demand, and a focus on clean energy integration. At the same time, the market must address cost, integration, and regulatory issues to realize its full potential. By prioritizing investment, simplifying regulations, and strengthening grid infrastructure, Indonesia can accelerate the adoption of FACTS technologies—ultimately building a more efficient, reliable, and sustainable power system for the future.

List of Flexible AC Transmission System Market in Indonesia Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, flexible AC transmission system companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the flexible AC transmission system companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7

Flexible AC Transmission System Market in Indonesia by Segment

The study includes a forecast for the flexible AC transmission system market in Indonesia by generation, product, end use, and application.

Flexible AC Transmission System Market in Indonesia by Generation [Analysis by Value from 2019 to 2031]:

• First Generation
• Second Generation

Flexible AC Transmission System Market in Indonesia by Function [Analysis by Value from 2019 to 2031]:

• Voltage Control
• Network Stabilization
• Transmission Capacity
• Harmonic Suppression

Flexible AC Transmission System Market in Indonesia by Application [Analysis by Value from 2019 to 2031]:

• Voltage Control
• Power Control

Flexible AC Transmission System Market in Indonesia by End Use [Analysis by Value from 2019 to 2031]:

• Utilities
• Renewables
• Industrial
• Railways
• Others

Features of the Flexible AC Transmission System Market in Indonesia

Market Size Estimates: Flexible AC transmission system in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Flexible AC transmission system in Indonesia market size by generation, product, end use, and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different generations, products, end uses, and applications for the flexible AC transmission system in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the flexible AC transmission system in Indonesia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the flexible AC transmission system market in Indonesia?
Answer: The major drivers for this market are an expansion of transmission lines, an increasing need for STATCOM devices to regulate voltage, and escalating integration of renewable energy into power grids.
Q2. What are the major segments for flexible AC transmission system market?
Answer: The future of the flexible AC transmission system market looks promising with opportunities in the utility, renewable, industrial, and railway markets.
Q3. Which flexible AC transmission system market segment will be the largest in future?
Answer: Lucintel forecasts that, within the generation category, the second generation will remain the larger segment over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the flexible AC transmission system market in Indonesia by generation (first generation and second generation), function (voltage control, network stabilization, transmission capacity, and harmonic suppression), application (voltage control and power control), and end use (utilities, renewables, industrial, railways, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Flexible AC Transmission System Market In Indonesia, Flexible AC Transmission System Market In Indonesia Size, Flexible AC Transmission System Market In Indonesia Growth, Flexible AC Transmission System Market In Indonesia Analysis, Flexible AC Transmission System Market In Indonesia Report, Flexible AC Transmission System Market In Indonesia Share, Flexible AC Transmission System Market In Indonesia Trends, Flexible AC Transmission System Market In Indonesia Forecast, Flexible AC Transmission System Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.