G

eneral Electric (GE) Indonesia, the local unit of the US conglomerate, has said that over half of its revenues this year will come from its aviation as well as oil and gas businesses through contracts with both state-owned enterprises and private companies.

GE Indonesia CEO Handry Satriago said that the local unit'€™s revenues had hit US$1 billion '€” beyond the 2013 target.

'€œOf nearly 160 countries where GE is present, 24 of them topped the US$1 billion revenue line. And we were in that category alongside countries such as Algeria and Thailand,'€ he said.

Last year, the company had also committed to $300 million spending, including investments, for a roughly three-year time frame for Indonesia, he noted.

He added that this year, the company sought to increase revenues by '€œdouble digits'€ and would rely on its aviation as well as oil and gas units to drive more than 50 percent of revenues.

GE Indonesia runs eight units, namely aviation, transportation, oil and gas, power and water, energy management, lighting, health care and capital project financing. These units represent the gamut of businesses the parent company runs worldwide.

'€œLast year, oil and gas contributed 35 percent '€” the largest '€” to our business,'€ he noted.

'€œThis year, we expect both aviation and oil and gas to deliver equal amounts,'€ he further said.

He added that under the aviation unit, GE Indonesia would continue supplying airplane engines to various airliners such as state-owned flag carrier Garuda Indonesia (GIAA), besides privately-owned domestic airliners.

The engines GE Indonesia had committed delivery to Garuda include 20 units of GE90 '€” large engines that propelled Boeing 777-300ER airplanes, he added.

'€œThe airplane sector remains robust, with passenger numbers expected to rise above 20 percent,'€ he said, adding that the growth of GE Indonesia ran parallel to their customers'€™.

However, Handry pointed out that the oil and gas sector would be more of a challenge. He said that an unpredictable outcome from this year'€™s general election could halt exploration projects.

Indonesia is scheduled to hold its legislative election on April 9 and presidential election on July 9.

'€œWe are concerned about delays in decision-making during the general election,'€ he said, adding that GE Indonesia was in discussions with several operators of major subsea exploration projects.

Handry added that GE Indonesia had invested at least $50 million to enhance the manufacturing capacity at their GE O&G '€” Vetco Gray facility in Batam partly in lieu of future big projects.

He pointed out that the facility could now manufacture '€œChristmas [Xmas] Tree'€, or equipment used to separate gas from other components during offshore drilling. The facility in Indonesia is the second, besides that in Aberdeen, Scotland, to manufacture such equipment.

The facility earlier produced wellheads and pipe connectors.

'€œThe facility in Indonesia could produce up to two trees per month. We see a promising future in the subsea business in Asia and especially Indonesia,'€ he said.

Besides expanding its aviation and oil and gas business, GE Indonesia plans to push forward its lighting and locomotive businesses through various expansions and project deliveries.

Handry noted that GE Indonesia has enhanced the production capacity of the GE Lighting Indonesia facility in Sleman, Yogyakarta.

'€œMore than 35 million lamps will be produced and chiefly exported to markets like the US,'€ he said.

He further said that in addition to airplane machines, GE Indonesia would deliver another 50 locomotives to state-owned railway company PT Kereta Api Indonesia (KAI).

'€œThis is on top of the 100 locomotives we delivered last year,'€ he noted.

GE has been supplying locomotives to Indonesia for 60 years and there are at least 320 GE locomotives in operation in the country.