Maksindo: Indonesia's biggest machinery producer

PT Tk Machine Maksindo is a company engaged in the production and sale of food machinery, packaging machinery, machine for business, machinery hotels, catering, restaurant machines, etc.

PT. Tk Machine Maksindo has experienced since 2004 and has served thousands of customers throughout Indonesia and several countries.

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Bukaka: Indonesia's biggest heavy industry companies

Commencing in 1978, from a small scale operation with only twelve employees and a single product line, this company has grown into a multi-million dollar company with thousand of employees. Pioneer in the line of its genuine businesses, PT Bukaka Teknik Utama’s main activities cover the engineering and manufacturing of infra-structure related products and services.

The focus and strength of the company lie with its continuing and innovating experience in serving the rapid national development of the most important support sectors, namely energy transportation, and communication. The challenging enormous demand for the infra-structure, strives the company to keep its attention to the ongoing innovation competing world-wide.



This is a company with breakthroughs of utilizing the maximum use of its productive personnel and continuous efficiency improvement to the attainable level of innovation.

The company is opened to all opportunities that promote efficiency in such a spread-wise area of activities. Though delivery as the final stage of operation is executed in an efficient and economical manner, the company keeps its improving process, even it has to invite and or to cooperate with expertises.

This is a company which implements the objective function of the good corporate governance. Governing the internal audit implementation to meet the objectives of good cooperate governance is totally inseparable.

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Sany to Build $200m Factory in Cikarang

China-based coal mining equipment maker Sany signed a memorandum of understanding (MoU) with Indonesia on Saturday tp invest up to $200 million to build a production base for its heavy machineries in Cikarang, Bekasi.

“Sany is convinced that we're able to sell our products to Asian countries,” said the president director of Sany, Liang Wengen.

“Our market share in the Asian market is still very small, at less than 5 percent. So [through] the investment in Indonesia, we hope we can increase our market share in Asian countries.”


Wengen said the initial injection would be $15 million, with the total investment at $200 million.

“This is going to the biggest investment that Sany has made.”

Sany's plan is part of the Chinese government's pledge to support development in Indonesia and improve the trade balance between the two countries.

Wengen said the factory would play an important role in boosting revenue to 350 billion RMB ($54 billion) in 2015, up from 90 billion RMB target for this year.

"We're not just going to manufacture here, but we will also transfer our technology to Indonesia," he said.

The factory will be located on 10 hectare in Cikarang industrial zone. It will have an annual capacity to manufacture 1,000 units of heavy equipment and is expected to absorb 1,500 workers. Construction is expected to star in July, with operations expected to open in 2012

"We have a passion for Indonesia. Its huge population and low labor cost are also what draw us here. We're optimistic that our operation here will break even in no time," Wengen said.

Sany group started operations in 1989 and currently has factories in the United States, Germany, India and Brazil. The corporation employs more than 53,000 people in more than 120 countries. It's sales last year reached 50 billion RMB.

Agus Cahyana, the secretary general of the Industrial Ministry, said that the government welcomed the new investment would facilitate it by helping the company find the location and providing market data.

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Indonesia to boost local industry

The government has scrapped import duties for some raw materials and machinery, but it also hiked tariffs for imported consumer goods in a bid to boost the competitiveness of local industries against imported goods.

In a decree released on Tuesday, the Finance Ministry eliminated import duties on 182 types of raw materials and capital goods needed by the chemical manufacturing, food manufacturing, machinery, electronics and shipping sectors. The previous duties were 5 percent.

However, the government also raised import duties for some processed goods from 5 percent to 10 percent. The affected goods include sardines, tuna, mackerel and candy.

“We will try to help local industries improve their competitiveness against imported products in Indonesia,” Bambang Brodjonegoro, the finance ministry’s head of fiscal policy, said on Tuesday.

Local industry players have voiced concerns about the flood of cheap goods from China into Indonesia after the Asian-China Free Trade Agreement was implemented in January 2010. Business representatives have complained that Indonesia opened up its market without first instituting the necessary policies to strengthen domestic businesses.

The Central Statistics Agency (BPS) reported that Indonesia recorded its largest trade deficit with China last year. Although it had a $22 billion overall surplus in international trade in 2010, it had a $4.7 billion trade deficit with China.

An Industry Ministry survey of 11 cities showed Indonesian textiles, furniture, electronics, metals and machinery manufacturers were hurt by the wave of cheap, Chinese imports, prompting fears that businesses would lay off workers.

Heri Kristono, director of tariffs at the Finance Ministry’s customs office, said the government scrapped some import duties that were related to the shipping sector to help local firms fulfill cabotage rules, which require vessels operating in the country’s waters to register as Indonesian-flagged vessels, except for six specific activities in the oil and gas sector.

Heri said Indonesia registered 898 foreign vessels, but about 460 of them have not paid the import tariffs as the ships were considered to be manufactured outside the country. With the decree, the owners of the vessels do not have to pay the fees.

Industry representatives and economists welcomed the government’s move.

Franky Sibarani, secretary of Indonesian Employers Association (Apindo), said scrapping import tariffs for some goods in the affected sectors would help manufacturers cut production costs.

He also said raising import tariffs for some processed goods would help protect local food manufacturers from a surge of imported goods.

Ahmad Erani Yustika, an economist at the Institute for Development Economic Finance, said the move was a step toward easing concerns about the trade deficit with China.

“It is good to know the government has started to think about industries, not just trying to earn as much as it can get from customs,” Erani said.

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