Indonesian forging factories have a competitive advantage in terms of cheap labor and abundant mineral resources. Many domestic and foreign companies have set up their forging production lines in Indonesia, which gradually strengthens the Indonesian forging industry. From the perspective of labor, the wages of Indonesian workers are relatively low compared to developed countries, which gives Indonesian forging factories an obvious advantage in production cost. According to data released by the industrial sector, Indonesia’s manufacturing average wage is only 3.99 US dollars per hour, far lower than Japan, South Korea, the United States and other countries. In addition, Indonesia’s rich mineral reserves and low metal material prices also contribute to its competitive advantage. Under the guidance of the government, Indonesia is also accelerating the development of industrial raw material mineral resources, which will help forging manufacturers to gain advantages in raw material costs. The Indonesian government has formulated a series of policies and measures to support industrial development, such as flexible financing policies, technology innovation plans, and opening up to the outside world. These provide more support to forging factories and are conducive to its larger market share globally. However, in the fiercely competitive international market, strengthening technological innovation and improving product quality are still the key to Indonesian forging enterprises overcoming development bottlenecks.
