Research on the development process and advantages of Indonesia’s forging industry, with concrete examples and basis on national policies.
The forging industry is an important manufacturing sector in Indonesia that has long received support and attention from the government. With the deepening of global industrialization and the gradual upgrading of industrial structure, the forging industry in Indonesia is currently facing new development opportunities.
I. Current situation of Indonesia’s forging industry
Currently, Indonesia’s forging industry as a whole is in a period of rapid growth, driven by the demand from various industries such as automotive parts, railways, and ships. According to relevant statistics, the total export value of Indonesia’s forging reached 7.3 billion US dollars in 2019, showing a trend of gradual increase in recent years.
II. Advantages of Indonesia’s forging industry
- Geographical advantage
Indonesia is located in the Southeast Asian region with excellent geographical location, providing smooth and convenient transportation networks for all types of forging manufacturing enterprises worldwide. Additionally, the country is classified as middle and low-income with relatively low production costs and wage levels, allowing higher competitiveness and lower production costs.
- Government support
In order to promote the development of Indonesia’s forging industry, the government has introduced a series of supporting policies, including tax incentives, technical training, and technology transfer in various forms.
- Rich resources
Indonesia has abundant natural and human resources. For example, about 80% of the land is suitable for agricultural production, Indonesia has the world’s largest rubber plantations and palm oil plantations, and the country also has a large number of coal mines, natural gas and iron ore resources, which provide reliable raw material guarantees for forging production.
III. Concrete cases of Indonesia’s forging industry
Taking PT.SIS, a forging company in Indonesia, as an example, the company was founded in 1978, owning two factories and mainly engaged in commercial aircraft hydraulic components, train wheels, steel castings and forgings. The company strictly implements a quality management system, continuously promotes advanced technology and new processes, and its train wheels have been exported to multiple countries and regions in the Asia-Pacific.
In conclusion, the forging industry in Indonesia has unique development advantages such as geographical location, government support, and rich resources. Moreover, concrete cases demonstrate that forging companies in Indonesia have attained a high level of proficiency in production processes and quality management. With continued promotion of relevant policies, Indonesia’s forging industry is expected to continue healthy and stable development in the future.
