Worthy Of Our Country Machine Tool Enterprise Attention Indonesia Market

By Qi Junhe

Metal processing industry and machinery association should be Jakarta Huang Yanqiu Sir, at the invitation of the China association of forging, managing director and secretary-general Mr. Gold's delegate, I with Chinese metalforming association and international communications JiHong comrade together in December 2012, 5-6 in Jakarta visited 2012 Indonesia Manufacturing exhibition (Manufacturing Indonesia or 2012), and had a face-to-face communication with relevant Indonesia Manufacturing enterprises. After the meeting, at the invitation of Mr. Huang Yanqiu, we also had the honor to visit PT. SINAR WIRA UTAMA.

The exhibition is the largest and most influential manufacturing exhibition and exchange event in INDONESIA organized by PAMERINDO INDONESIA, including Machine Tool INDONESIA, Tool & Hardware INDONESIA, Industrial Automation & Logistic exhibition and Fastener & Fixing Indonesia exhibition, with an exhibition area of 32,500 square meters, have increased by 40% over that of the last one. More than 2,400 enterprises from 39 countries and regions will participate in the exhibition, and the audience is expected to reach 25,000.

The technology, equipment and products on display are of contemporary international standard, with highly professional audience and high quality. If domestic enterprises plan to explore the market in Indonesia and even Southeast Asia, they can serve as a good exhibition platform. Another characteristic is that the vast majority of exhibitors are foreign enterprises, domestic enterprises are trade company and metal parts processing, the sense that gives a person is Indonesia's strength is very weak, the manufacturing technology and equipment through exchanges with Indonesia relevant industry associations and enterprises, to understand the basic same, Indonesia almost no machine tool manufacturing, even the hardware tools and fastener industry exhibitors are from Europe and the United States, Japan and Taiwan. Their explanation is the lack of technical strength, the manufacture of machine tools equipment is not competitive, so there is no enterprise engaged in this industry. Unlike the Chinese machine tool enterprises have so strong ability of introduction, digestion and absorption, and finally developed the machine tool equipment suitable for the Chinese market.

According to the current development level and manufacturing capacity of Indonesia's manufacturing industry, the products of Chinese enterprises in machine tools, hardware tools and other industries should be very suitable for the Indonesian market. Relevant domestic enterprises are invited to pay more attention to Indonesia, the largest and most potential southeast Asian market. From the perspective of the Chinese enterprises participating in the exhibition, there are as many as 114 enterprises (except enterprises from Hong Kong and Taiwan, there are about 200 enterprises), but each enterprise is not large in scale, with few metal cutting machines and more metal forming equipment. Traditional large enterprises are few, and small new rich are more. Some metal stamping and sheet metal processing equipment enterprises are not active in the domestic market.

According to the communication with relevant Indonesian enterprises, industry associations and government workers, the Indonesian government now attaches great importance to the development of Indonesian manufacturing industry and hopes to develop and revitalize Indonesian manufacturing industry by following the road of self-reliance and independence, so as to develop the Indonesian economy. The Indonesian government is formulating plans for the development of its national defense, military and aviation manufacturing industries. At the same time, it hopes to carry out a variety of non-exclusive cooperation with domestic enterprises interested in it, and sincerely invites them to explore the market and establish joint ventures in Indonesia. I think this will be an opportunity for China's manufacturing industry. I hope relevant departments, industry organizations and enterprises will pay attention to this and act according to the current situation so as not to miss the opportunity to explore the international market.

Output of about 1 million cars in Indonesia in 2011, is a joint venture (joint venture with Toyota Indonesia, all the rest of Japan's big three auto company solely invested enterprise, motorcycle production less than 3 million units, so the forging rarely, stamping professional enterprise is more, but the scale is small, old technology and equipment, much as cottage industry enterprises. The output value of China's mold enterprises is 556 million us dollars, equivalent to only 3 percent of China's mold. Among them, professional forging mold enterprises only 5.

Production costs vary slightly depending on the region. Costs for businesses in the Jakarta area are relatively high: the government-mandated minimum wage is about 2.3 million rupiah, or $1.50, for the first hour of overtime, and twice that for an hour later. Industrial electricity consumption is 700 rupiah/KWH (equivalent to 0.45 yuan).

Indonesia does not have its own producers of structural and mechanical steel and relies heavily on imports. However, there are abundant resources of electricity and aluminum ore, which can be used for aluminum alloy smelting and production.