Procurement from Indonesia
Indonesia is emerging as a procurement market for the global manufacturing sector. With a vast and resource-rich landscape, Indonesia offers a strategic advantage for sourcing raw materials such as rubber, palm oil, and minerals, essential for various industries.
The nation’s pro-business policies and economic reforms have fostered a favorable environment for manufacturing investments. Its growing labor force and competitive labor costs attract businesses seeking to expand their production capabilities.
Indonesia is home to several well-known suppliers engaged in exports. For instance, PT Astra International and PT Polytron Indonesia are big players in the manufacturing sector. Manufacturing clusters have also been established, with Java, Batam and Bekasi being prominent examples. These clusters offer infrastructure and logistical advantages for businesses looking to set up operations.
The consulting requests that GetAhead Supply Chain Solutions receives for Indonesia mostly focus on three industry sectors
Automotive & E-Mobility
Indonesia is a growing supplier market for the automotive and mobility sector, offering several range of products suitable for export. The country’s strategic location in Southeast Asia, combined with a growing automotive industry, makes it an attractive hub for both domestic and international manufacturers. Key products include automotive components and parts, motorcycle manufacturing, automotive batteries, and commercial vehicles. One out of many examples is PT Indoparts, which manufactures automotive components and parts, particularly for the aftermarket sector. Indonesia is also building up electric vehicle (EV) production and has a favorable strategic position through own mineral deposits that are essential for EV batteries, such as nickel and lithium.
Smart Manufacturing
Domestic Indonesian companies, such as PT Astra Otoparts Tbk, a leading automotive component manufacturer, and PT Hexing, specializing in smart metering and energy management solutions, are actively contributing to the export of smart manufacturing solutions. These companies cater to the growing global demand for technologically advanced manufacturing products, making Indonesia an attractive source for efficient and high-quality manufacturing solutions.
Sustainable Materials and Fabrics
Indonesia is a dynamic supplier market for green tech and sustainable materials, addressing the growing global demand for eco-friendly solutions. Key products for export include sustainable wood and bamboo products for construction and furniture with companies like Kayu Lapis Indonesia, recycled materials like plastic pallets produced by PT Enviro Pallets and innovative environmental solutions encompassing water purification systems and pollution control technologies offered by firms like PT. Adiprima Suraprinta and PT Putra Nagreg Utama.
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