The lack of Indonesia machinery industry development policies and the materials needed to manufacture machinery also makes foreign investors not to invest in setting up factories. Stopped exporting related mechanical products to the Indonesian market.
According to Economy Watch data, Indonesia’s first largest imported item is machinery and equipment, followed by the chemical, fuel, and food industries in order. The main sources of machinery and equipment imports are Japan, Taiwan, South Korea, and Mainland China, and a small number are also from Europe. This article is only a brief analysis of the machinery market, plastic and rubber machinery, textile machinery, and food machinery.
The machinery market is still dominated by imports
Indonesia’s basic industries such as raw materials, components, and molds all rely on imports, but the production equipment for the mold, motor, electronics, metal, and plastic processing industries is relatively old.
Although the Indonesian machinery market has business opportunities, it has not seen major machinery exporting countries such as Europe, America, Japan, South Korea, Taiwan, and China to invest in factories. The reason may be that the government lacks machinery industry development policies, and the materials required for manufacturing machinery such as high-quality cast steel, Steel plate, steel must rely on imports, etc. In addition, in addition to the systematic establishment of steam locomotive manufacturers in the Indonesian market and the organization of upstream manufacturers to supply the required spare parts, the vertical integration of other industries is insufficient, resulting in insufficient support for components and OEM.
Asian machinery has a higher market share in Indonesia
Indonesia's machinery market still has a higher market share of Asian machinery, and far surpasses Europe. The main reasons are:
1. The selling price is relatively low: European machinery prices are high, which cannot meet the investment philosophy of short-term recovery by Indonesian companies. In addition, Japanese auto locomotive manufacturers and component suppliers have the function of gathering and supporting each other, so the market
The percentage is higher.
2. Maintenance support is relatively easy: Indonesia's machinery foundation is fragile and requires frequent maintenance support. Foreign machinery operators must have sufficient maintenance technicians to maintain a good brand image. In addition to manpower, the adequacy of spare parts is also an important consideration. In this regard, Asia has advantages over European and American brands.
Taiwan Machinery is very popular in Indonesia
In terms of Taiwan machine tool exports, Indonesia is the 14th largest exporter of Taiwan machine tools. In 2015, Taiwan machine tools were exported to Indonesia for an amount of US$68 million. The top three models are integrated processing machines, lathes and punches, followed by Drilling drilling machines, Boring boring machines, Milling milling machines, Grinding grinders, Shaping planing machine tools, EDM electrical discharge machining machines.
Taiwan Machinery is very popular in Indonesia and is clearly separated from Europe, America, Japan, and the Mainland China machinery market. However, after the ASEAN plus one, the export of Chinese mainland machinery to Indonesia is reduced to zero tariffs. According to interviews with Indonesian machinery importers, although the quality of mainland Chinese machinery is still low in the short term, progress is rapid, and the tariff advantage will gradually affect Taiwan's machinery competitiveness in the future. , Worrying about the future expansion of the Indonesian market. It is recommended that in addition to continuous research and development and maintaining technical advantages, the machinery industry also needs to strengthen the promotion of brand image and after-sales service. Brand promotion is to participate in the Indonesian Professional Machinery Exhibition to enhance its popularity and image. After-sales service is building a good parts supply system and Training and education of technical personnel.
Plastic and rubber machinery all rely on imports
At present, the world's major plastics and rubber machinery production countries include Germany, Italy, China, Japan, the United States, Taiwan, and Switzerland, of which Germany, Italy, Japan, Taiwan, China, and Switzerland are the most representative for export. Indonesia is still unable to manufacture or assemble plastic machinery, and all of them need to rely on imports. As for the self-made molds used, the self-made rate is also less than 10%, that is, 90% to 95% of the molds need to be imported from abroad.
The plastic injection molding machine imported from Indonesia is the largest plastic injection molding machine. It is mainly used in household products, home appliances, and auto parts. Among them, household products (such as buckets and chairs) account for most of them.
The second is the plastic extruder, which is used for wire, pipe, or shaped strips, and also has many uses for the production of recycled raw materials and packaging films. The second is the hollow molding machine or blow molding machine, mainly used in bottles or small and medium-sized plastic containers.
In the automobile and motorcycle industry, plastic machinery is widely used in the production of spare parts, but Japanese and Korean automobile and motorcycle brand manufacturers are the supply partners for protecting their components, so most of the parts used by Japanese and Korean car manufacturers are monopolized by their agents or their joint ventures. , The same is true for the mechanical part.
Taiwan’s plastic machinery imported from Indonesia accounts for about 40%, followed by 35% in mainland China, 15% in Japan, and 10% in other regions. About 15% of 15% in Japan have used plastic machines. 10% of other regions also have a large part of them used by medieval machines. It is estimated that the number of used machines accounts for about 25% of the total.
Textile machinery can seize business opportunities
Textile and Garment is the No. 1 export processing industry in Indonesia. Indonesian Textile and Garment Machinery is mainly imported from Japan, China, Germany, Taiwan, South Korea, India, Switzerland, and Italy. Among them, Japanese machinery manufacturers provide the most favorable payment terms. Mainland China Machinery won the price, and the two countries accounted for more than 40% of the textile machinery market. European machinery is most respected by the Indonesian industry for its Italian quality, but the higher price and weaker access
And the after-sales service system makes it difficult to sell widely in Indonesia.
In view of the importance of the textile and garment industry to the Indonesian economy, the Indonesian government allocates annual funds to encourage textile and garment manufacturers to update old machinery and equipment, including the purchase of machinery discount subsidies and low-interest loans. Although textile and apparel are mainly outside
The market sentiment in Europe and the United States continues to be sluggish. With the Indonesian government's emphasis on the industry, textile and garment machinery still have the potential for expansion in the long run.
Food processing machinery has considerable room for growth
Indonesia's huge domestic market of 260 million people has created a thriving food processing industry. Indonesians spend an average of 50% of their income on food, so there are about 4,700 medium and large food processing plants, more than 77,000 small businesses and more than 800,000 Family factory; the number of employees reaches 3 million, and the total output value exceeds 30 billion US dollars, of which large and medium-sized enterprises account for 85% of the total output value of the food industry, and the number of employees accounts for about 25% of the total industrial number.
Indonesia’s food processing machinery and components rely heavily on imports, mainly from Japan, Taiwan, South Korea, and mainland China. Imported machinery includes can be making machines, filling machines, capping machines, bottling and canning machines, frying machines, baking Machines, refrigeration equipment, and vacuum packaging machines. Due to the huge domestic demand, the domestically produced processed food supply in Indonesia is still insufficient, and the processed food and related machinery and equipment market still have room for growth in the future.