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PREVIEW
Indonesia
AutoBook
2017
ii
WELCOME!

Indonesia is the largest automotive market in ASEAN – with 250
million people and a car population of only 40 cars per thousand
people, a significant potential for growth.
Japanese OEMs are dominating the Indonesian market with
Daihatsu/Toyota being the market leaders and the Mini MVP
(Multipurpose Vehicle) the preferred segment.
The information in this edition was compiled over the past years from
personal research, the internet and with the support of friends at
automotive companies, automotive organizations, industrial estates
and business organizations.
I am sure this book will give you lots of information and inspire you to
do business in Indonesia.
How to use the Indonesia AutoBook
The information was compiled from personal research, internet
research with support of friends at automotive companies, automotive
organizations, industrial estates and business associates. This
AutoBook helps you to understand the market and identify potential
customers or suppliers:
1) Business Development - managers who seek to identify
potential customers and sales opportunities in the Indonesia
automotive industry
2) Outsourcing – local and international commodity managers,
buyers who are looking to source Automotive components from
Indonesia
3) Localization – international managers desiring to expand their
market and set up a footprint in Indonesia – either for distribution
or local production.
Focus on contacts
The Indonesia AutoBook features quick links to access web sites,
Google Map locations and social media sites of the featured
companies and their representatives. Simply click on the icons to
connect:
Bangkok, July 2017
Ulrich Kaiser
Indonesia AutoBook Preview
Taiwan-made machine tools leap into
new-generation manufacturing
Vertically and horizontally integrated
Apart from supplying advanced machining equipment to the global
manufacturing market, Taiwan also provides integrated machine development
solutions. The nation operates one of the world’s most prolific industry clusters,
which gives its machinery makers an edge in providing complete supply chain
service and one-stop machining solutions to international manufacturers.
Industrial parks located across the island serve as bases of thousands of
machine tool makers, assemblers, and machine part suppliers who are globally
recognized for their skills and technological achievements. They support
each other through cooperation and collaboration, thus enabling them to be as
flexible and adaptable as possible. Upstream and downstream companies in the
machinery industry are integrated vertically. Furthermore, the Taiwan machine
tool sector is also aligning with other industries like information technology.
By integrating horizontally, Taiwan machine tool suppliers have tapped into the
strengths of other sectors to create more advanced machining applications.
The rise of multifunction machines, customized machining processes,
and smart automation solutions from Taiwan has greatly improve overall
manufacturing performance. This is also fueling a surge in demand for hybrid
machine tools. Manufacturers can easily find Taiwan-made machines that
blend additive manufacturing and multi-tasking functions. Hybrid machines
like these are especially well-suited for small lot production of difficult-to-cut
materials required in the aerospace, medical and energy industries. Taiwan’s
growing success in providing machining automation is also the result of
horizontal integration. For example, energy-efficient power products
from leading companies have helped makers increase the power
supply efficiency of their machines by up to 90 percent. Meanwhile,
automation solution providers in Taiwan have secured a number
of patents for measurement applications, which can substantially
improve capability to provide in-house automated handling and
manufacturing execution systems (MES). Such automation systems
will help realize fully automated cells in factories.
Taiwan machine tool makers have mustered enough support
from the nation’s technology sector, giving them the edge to
create machining solutions for maximum stability, efficiency,
and functionality. For manufacturers who are aiming to boost
productivity and quality, Taiwan provides the most comprehensive
solutions in machine tools used in different manufacturing sectors.
technique can achieve deeper and more precise holes with smaller diameters.
Both help enhance the range of applications of machine tools. With such high-
performance machines, good production practices can be upheld by every
manufacturer, whether it is located in an advanced nation or a developing
country. This also means future machines can level the playing field, which
will give underdeveloped economies the opportunity to develop their fledging
manufacturing sector with the help of advanced machine tools from Taiwan.
Taiwan of late has also made significant inroads in the development of large-
sized, multi-axis machines, thus giving a number of local machine tool builders
the leverage to compete on the global stage. Several Taiwanese companies
specialize in 5-axis, high-speed, double-column, and moving-column machining
centers that are extensively used in aviation manufacturing. And so international
manufacturers who are sourcing for machine tools that could meet their
production requirements do not have to look far as Taiwan offers all sorts of
industry-specific machines that can verily meet their expectations and budget.
www.twmt.tw
Local machinery manufacturers are pillars of Taiwan’s economy: they have
for many years maintained a distinct and irreplaceable role in the production
sector, especially in the development and supply of machine tools. Nearly every
producer who succeeded in the manufacturing market has them to thank for.
According to a WTO statistics report, Taiwan placed second among the world’s
top contributors to the global value chain in 2015, with nearly 70% of its
manufactured goods and services exported worldwide. This evidently shows
the extent of Taiwan’s involvement in global trade. On industrial machinery
development, Taiwan has managed to preserve a sterling reputation in the global
market. This Asian manufacturing powerhouse is ranked alongside the world’s
top five exporters and top seven producers of machine tools used in various
industries, including automotive, electronics, information and communication
technology, aerospace, and large-scale infrastructure.
From conventional machine tools to future production facilities
Taiwan-made machine tools offer better price-performance ratio than similar
ones made by other countries. Each is designed, built, and equipped entirely in-
house to ensure utmost quality and machining precision. Machine tools that are
exported by Taiwan can be broadly classified into two categories:
Conventional machine models with classic features
Sophisticated machining units (e.g., EDM, ultrasonic/laser machine tools,
electrochemical grinder, photochemical milling machine, and large-scale
multi-axis machine)
Taiwan’s sophisticated ability in building machine tools is a product of over
several decades of manufacturing experience. Locally made machining
equipment, such as vertical CNC, lathe, milling machine, drill press, and grinding
machine, bears the hallmark of manufacturing flexibility that only Taiwanese
builders can execute flawlessly. Providing a range of machining models that
meet the requirements of industrial end-users, these unsung heroes have helped
put Taiwan on the global machinery map. The nation supplies various types
of grinders that include cylindrical, surface, internal and centerless. These
boast superior stability and rigidity, which are exactly what manufacturers of
automotive gear shafts, auto components, electronics, IT gadgets, and mold dies
needed.
Taiwan also provides an assortment of vertical and horizontal CNC lathes.
Variations in design and functionality of these types distinguish one from
another. New-generation lathes also have been launched recently, which
feature enhanced operations for better milling, drilling, tapping, and spindle
performance.
As the global manufacturing sector moves toward simplifying once complicated
machining processes down to single a setup, many local machine tool builders
are stepping up to the challenge. So far, improvements in machine design
successfully eliminate many machining failures resulting from vibrations and
drastic temperature changes. New models rolled out of several factories in
Taiwan overcome the limitations of traditional machining processes. They
feature optimum cutting accuracy, temperature control, and running stability,
with every detail considered for modern machining. With all the advances,
global manufacturers have more and better options than just conventional
processes. Machine buyers could easily notice the differences. Take an EDM
for example, locally made EDMs deliver excellent cutting precision, which is
made possible by combining linear motor technology and the latest auto wire
threading mechanism to meet multi-angle manufacturing requirements.
Another good example is the drilling machine. Two types dominate the market
currently: ultrasonic drilling ensures machining stability, reduces chipping,
and allows micro-hole machining of hard and brittle materials, while laser
(1)
(2)
Taiwan-made machine tools leap into
new-generation manufacturing
Vertically and horizontally integrated
Apart from supplying advanced machining equipment to the global
manufacturing market, Taiwan also provides integrated machine development
solutions. The nation operates one of the world’s most prolific industry clusters,
which gives its machinery makers an edge in providing complete supply chain
service and one-stop machining solutions to international manufacturers.
Industrial parks located across the island serve as bases of thousands of
machine tool makers, assemblers, and machine part suppliers who are globally
recognized for their skills and technological achievements. They support
each other through cooperation and collaboration, thus enabling them to be as
flexible and adaptable as possible. Upstream and downstream companies in the
machinery industry are integrated vertically. Furthermore, the Taiwan machine
tool sector is also aligning with other industries like information technology.
By integrating horizontally, Taiwan machine tool suppliers have tapped into the
strengths of other sectors to create more advanced machining applications.
The rise of multifunction machines, customized machining processes,
and smart automation solutions from Taiwan has greatly improve overall
manufacturing performance. This is also fueling a surge in demand for hybrid
machine tools. Manufacturers can easily find Taiwan-made machines that
blend additive manufacturing and multi-tasking functions. Hybrid machines
like these are especially well-suited for small lot production of difficult-to-cut
materials required in the aerospace, medical and energy industries. Taiwan’s
growing success in providing machining automation is also the result of
horizontal integration. For example, energy-efficient power products
from leading companies have helped makers increase the power
supply efficiency of their machines by up to 90 percent. Meanwhile,
automation solution providers in Taiwan have secured a number
of patents for measurement applications, which can substantially
improve capability to provide in-house automated handling and
manufacturing execution systems (MES). Such automation systems
will help realize fully automated cells in factories.
Taiwan machine tool makers have mustered enough support
from the nation’s technology sector, giving them the edge to
create machining solutions for maximum stability, efficiency,
and functionality. For manufacturers who are aiming to boost
productivity and quality, Taiwan provides the most comprehensive
solutions in machine tools used in different manufacturing sectors.
technique can achieve deeper and more precise holes with smaller diameters.
Both help enhance the range of applications of machine tools. With such high-
performance machines, good production practices can be upheld by every
manufacturer, whether it is located in an advanced nation or a developing
country. This also means future machines can level the playing field, which
will give underdeveloped economies the opportunity to develop their fledging
manufacturing sector with the help of advanced machine tools from Taiwan.
Taiwan of late has also made significant inroads in the development of large-
sized, multi-axis machines, thus giving a number of local machine tool builders
the leverage to compete on the global stage. Several Taiwanese companies
specialize in 5-axis, high-speed, double-column, and moving-column machining
centers that are extensively used in aviation manufacturing. And so international
manufacturers who are sourcing for machine tools that could meet their
production requirements do not have to look far as Taiwan offers all sorts of
industry-specific machines that can verily meet their expectations and budget.
www.twmt.tw
Local machinery manufacturers are pillars of Taiwan’s economy: they have
for many years maintained a distinct and irreplaceable role in the production
sector, especially in the development and supply of machine tools. Nearly every
producer who succeeded in the manufacturing market has them to thank for.
According to a WTO statistics report, Taiwan placed second among the world’s
top contributors to the global value chain in 2015, with nearly 70% of its
manufactured goods and services exported worldwide. This evidently shows
the extent of Taiwan’s involvement in global trade. On industrial machinery
development, Taiwan has managed to preserve a sterling reputation in the global
market. This Asian manufacturing powerhouse is ranked alongside the world’s
top five exporters and top seven producers of machine tools used in various
industries, including automotive, electronics, information and communication
technology, aerospace, and large-scale infrastructure.
From conventional machine tools to future production facilities
Taiwan-made machine tools offer better price-performance ratio than similar
ones made by other countries. Each is designed, built, and equipped entirely in-
house to ensure utmost quality and machining precision. Machine tools that are
exported by Taiwan can be broadly classified into two categories:
Conventional machine models with classic features
Sophisticated machining units (e.g., EDM, ultrasonic/laser machine tools,
electrochemical grinder, photochemical milling machine, and large-scale
multi-axis machine)
Taiwan’s sophisticated ability in building machine tools is a product of over
several decades of manufacturing experience. Locally made machining
equipment, such as vertical CNC, lathe, milling machine, drill press, and grinding
machine, bears the hallmark of manufacturing flexibility that only Taiwanese
builders can execute flawlessly. Providing a range of machining models that
meet the requirements of industrial end-users, these unsung heroes have helped
put Taiwan on the global machinery map. The nation supplies various types
of grinders that include cylindrical, surface, internal and centerless. These
boast superior stability and rigidity, which are exactly what manufacturers of
automotive gear shafts, auto components, electronics, IT gadgets, and mold dies
needed.
Taiwan also provides an assortment of vertical and horizontal CNC lathes.
Variations in design and functionality of these types distinguish one from
another. New-generation lathes also have been launched recently, which
feature enhanced operations for better milling, drilling, tapping, and spindle
performance.
As the global manufacturing sector moves toward simplifying once complicated
machining processes down to single a setup, many local machine tool builders
are stepping up to the challenge. So far, improvements in machine design
successfully eliminate many machining failures resulting from vibrations and
drastic temperature changes. New models rolled out of several factories in
Taiwan overcome the limitations of traditional machining processes. They
feature optimum cutting accuracy, temperature control, and running stability,
with every detail considered for modern machining. With all the advances,
global manufacturers have more and better options than just conventional
processes. Machine buyers could easily notice the differences. Take an EDM
for example, locally made EDMs deliver excellent cutting precision, which is
made possible by combining linear motor technology and the latest auto wire
threading mechanism to meet multi-angle manufacturing requirements.
Another good example is the drilling machine. Two types dominate the market
currently: ultrasonic drilling ensures machining stability, reduces chipping,
and allows micro-hole machining of hard and brittle materials, while laser
(1)
(2)
Chapter 1
Introduction
Indonesia’s Automotive Industry
The automotive industry is a central pillar of Indonesia’s manufacturing sector,
with global corporations investing heavily to take advantage of strong growth in
Southeast Asia’s biggest economy.
With more than 250 million inhabitants disseminated over 17,000 islands, Indonesia is
the fourth most populous nation in the world and the largest economy in the Association
of South-Asian Nations (ASEAN) representing 40% of its GDP and population. The
entirety of the automotive activity in the country is concentrated in Jakarta or around in
West Java. Java represents 70% of national new vehicle sales, including 24% in the
Jakarta province alone.
Section 1
AT A GLANCE
1. Indonesia has experienced 150% growth
in production and sales from 2009 to 2014
2. Vehicle sales in ASEAN have reached
more than 3.1 million units and Indonesia
reached the sales of nearly 1.3 million
vehicles (42% of ASEAN market)
3. Value of investments in Indonesia’s
automotive industry has expanded by
10-12% in 2015 or more than USD 4.3
billion
4. Toyota-Daihatsu, Nissan, Honda, Suzuki,
Mitsubishi, Isuzu and Hino currently have
the largest production capacities in
Indonesia
5. MPVs and SUVs are to Indonesia what
pick ups are to Thailand, representing
two-thirds of local sales and production
6. 70% of parts still need to be imported, a
situation that is supposed to change with
the Low Cost Green Car program
Introduction
5
Chapter 2
Statistics
7
Chapter 3
OEMs
PT Astra Daihatsu Motor (Indonesia) is Daihatsu’s biggest overseas
investment and also Daihatsu’s production base outside Japan. Its
business is as a manufacturer and marketer of Daihatsu vehicles,
components and other related business.
Daihatsu operates two factories in Sunter, North Jakarta, and Karawang, West Java.
Daihatsu’s Indonesian plants have a capacity of 530,000 units making it the automaker
with the highest production share. At the plant that began operation in October 2012,
Daihatsu also established an R&D center for the purpose of local development that is
equipped with Indonesia’s first test course.
Section 1
AT A GLANCE
1. Commenced operation in Indonesia in
1978
2. Production capacity: 530,000 vehicles/
year
Daihatsu
9
PT Astra Daihatsu Motor
Head Office and Stamping Plant
Jalan Gaya Motor III/No. 5
Sunter II Jakarta Utara, DKI Jakarta 14330
Tel: +62 21 651 0300
hotline@daihatsu.astra.co.id
Mr Sudirman
President Director
Supranoto Tirtodidjojo

Deputy CEO
Engine Plant
Jl Raya Maligi VI Kawasan 

Karawang International Industry City

Lot M 6, Teluk Jambe 

Bekasi 41361 Jawa
Anggoro Harryajie
Head of Production
Astra Daihatsu Motor sold 185,226 units in 2014 which is an
equivalent of around 15.3% of the total domestic car sales in
Indonesia which was around 1.21 million units in 2013. The company
launched three new vehicles in Indonesia in 2015 and the new models
include the new Sirion, the Terios Spirit, and updated Xenia MPV.
In 2015, Daihatsu sold 167,808 units which represents a contraction of
9% when compared to 2014 but its market share increased from
15.3% in 2014 to 16.6% in 2015 and remained as Indonesia’s second
largest car seller last year.
The company was able to sell 58,121 units of Daihatsu Gran Max
Pickup last year which accounted for 5.7% of all models sold in the
country and represents the second most popular model in Indonesia in
2015. Daihatsu’s other popular model includes Daihatsu Ayla and
Daihatsu Xenia which accounted for 3.6% and 3.3% respectively and
they are the seventh and ninth most popular cars in the country.
10
Section 2
Other OEMs in Indonesia
11
The full version of the Indonesia AutoBook includes profiles of the following OEMS.
You can order your subscription to Indonesia AutoBook here.
Chapter 4
Indonesia
Automotive
Cluster
The automotive industry is the third largest sector contributing 10% of the GDP
Indonesias. The automotive cluster contributes to export and import trade flow.
The automotive industry in Indonesia is centered in the West Java Region which
consists of Banten, Jakarta and West Java provinces. However, there are also a small
number of companies located in both Central and East Java.
Section 1
AT A GLANCE
1. The Indonesian Automotive Cluster
consists of about 1,000 Tier 1 and 

550 Tier 2 suppliers.
2. This chapter deals with Indonesian or
predominantly Indonesian owned
companies.
Introduction
13
Poor public transportations systems is forcing people to invest in their
own transportation and other market place actions has afforded more
and more people the opportunity to own a vehicle.
The Indonesian automobile industry is dominated mostly by family
oriented vehicles. MPVs with 7 seats command almost 50% of the
market share in Indonesia with pick-up trucks coming in as the second
strongest segment.
The automotive industry in Indonesia is expected to continue to grow
over the next couple of years by demand of an emerging middle class
and a strong young generation with many first time buyers.
14
PT Astra Otoparts Tbk is the leading group of automotive
component manufactures in Indonesia, producing and
distributing a wide variety of two-wheeler and four-wheeler spare
parts.
In manufacturing business, Astra Otoparts has 4 business units, 12 consolidated
subsidiaries, 18 associates and jointly controlled entities, 2 cost companies, as well as
11 active sub subsidiary companies. 
Its products are split into:
Electrical Group (A/C System, Mirror, Fog Lamp, Horn etc.)
Engine Group (Filter, Exhaust Manifold Assy, Flywheel, Cover Assy Timing Gear etc.)
Power Train and Chassis Group (Steering Knuckle, Chassis Frame, Shock Absorber
etc.)
Body Group (Door Lock, Hood Lock, Door Hinge, Window Regulator etc.)
The customers of the company including:
Toyota, Daihatsu, Isuzu, UD Trucks, Chevrolet, Hino, Honda, Hyundai, Kia, Mazda,
Mercedes-Benz, Mitsubishi, Perodua, and Suzuki for four-wheelers.
Honda, Yamaha, Suzuki, Kawasaki, and TVS for two-wheelers.
In trading business, Astra Otoparts has a domestic business unit, an international
business unit, which exports to more than 30 countries, and a retail business unit that
distributes automotive components to the replacement market.
The retail network, known as the brand “Shop & Drive” continues to grow. At the end of
2014, it already had more than 300 outlets spreading across the islands of Java, Bali,
Kalimantan, and Sulawesi.
Section 2
AT A GLANCE
1. Founded: 1997 although the company
history goes back to 1976 including
several changes of names
2. Business: The company is the center of a
group of subcontractors active in various
fields of the automotive industry
3. Employees: 37,754
PT. Astra Otoparts Tbk
15
PT. Astra Otoparts Tbk
Jl. Raya Pegangsaan Dua Km. 2,2

Kelapa Gading - Jakarta, 14250
Tel: +62 21 460 3550
Dandy Soelip
Director

Ferri Firdaus
Senior Engineer
Winarto Amatdihardjo
Purchase Department Head
Filip Gunawan
Sales Operation Head
Section 3
Other Indonesian Tier 1 Automotive Supplier
16
The full version of the Indonesia AutoBook includes profiles of the following companies.
You can order your subscription to Indonesia AutoBook here.
Chapter 5
Japanese
Tier 1
The Advics Group is a brake system supplier who provides
advanced and high quality brake systems with components
supply to the global market.
The group products include:
Electronic Stability Control, Anti-lock Brake System, Brake Booster, Master Cylinder,
Hydraulic Booster, Load Sensing Proportioning Valve, Disc Brake and Drum Brake,
Electric Parking Brake, Foot Release Parking Brake Pedal. They are also a provider
of Premium Brake Pads in the aftermarket.
PT Advics Manufacturing Indonesiaproduces brake components such as brake
boosters, drum brakes, parking brakes.
PT Advics Indonesia is in charge of sale of brake systems and components for
automobile.
Section 1
AT A GLANCE
1. Manufacturer of braking components for
automobile
2. Belongs to the Aisin Group of companies
PT Advics Manufacturing Indonesia
18
PT Advics Manufacturing Indonesia
Jl. Harapan VIII Lot LL No. 9-10,
Kawasan Industri KIIC, Karawang
41361 Jawa Barat
Tel: +62 267 864 3141
PT Advics Indonesia
East Jakarta Industrial Park (EJIP)
Plot 5J Cikarang Selatan, Bekasi
17550, Jawa Barat
Tel: +62 21 897 0973
Mr Mariijono
Email: marijono@advics-min.co.id
Section 2
Other Japanese Tier 1 Automotive Suppliers
19
The full version of the Indonesia AutoBook includes profiles of the following companies.
You can order your subscription to Indonesia AutoBook here.
Chapter 6
North
American
Tier 1
Visteon is a global technology company that designs, engineers and
manufactures innovative cockpit electronics products and
connected car solutions.
Visteon Corporation supplies:
Instrument clusters, Audio Products, and Multi-Function Displays to the automotive
industry - including passenger cars, light trucks, and motorcycles.
Visteon is a global technology company that designs, engineers and manufactures
innovative cockpit electronics products and connected car solutions for most of the
world's major vehicle manufacturers. The company has corporate offices in US, China,
and UK along with 50 manufacturing, technical and customer centers in 21 countries.
Visteon manufactures automotive components and systems including interior plastic
parts such as instrument panels, glove boxes, consoles, and trim sets along with
electronic instrument clusters and audio units.
The company in Indonesia produces:
Automotive cockpit electronic manufacturer (electronic cluster, audio head unit,
climate control head)
Their major customers are:
PT Astra Honda Motor and Visteon
Automotive Electronic (Thailand) Ltd.
Section 1
AT A GLANCE
1. Commenced operation in 2011
2. Shareholders: PT Astra Otoparts Tbk,
Visteon Corp.
PT Astra Visteon Indonesia
21
PT Astra Visteon Indonesia
Jl. Lanbau RT 5/10, Kel. Karang Asem Barat
Kec. Citereup, Bogor 16810
Tel: +62 21 8791 9130
Prihatanto Agung
President Director
Donny Novanda
Director of Operations
Istakhry Malik
Engineering & Marketing Manager
Andhika Pramasiwi
Head of Purchasing
Section 2
Other North American Tier 1
22
The full version of the Indonesia AutoBook includes profiles of the following companies.
You can order your subscription to Indonesia AutoBook here.
Chapter 7
European
Tier 1
Bosch has been present in Indonesia since 1919. In May
2008, the company set up the wholly foreign-owned
subsidiary, PT Robert Bosch, in Jakarta and has branch
offices in Surabaya, Medan, Balikpapan, Semarang, Bali as well as an automotive
manufacturing plant in Cikarang, Bekasi.
In 2014 Bosch in Indonesia generated IDR 1638 billion (104 million euros) in sales and
employed more than 198 associates (as per March 10, 2016). Bosch provides a wide
range of technological products and solutions including components, diagnostic tools
and equipment for automotive, drive and control technology, power tools, security
systems and thermo-technology. In addition, PT BSH Home Appliances supplies
household appliances and appointed local agents represent the Bosch Packaging
Technology.
The Bosch Group is a leading global supplier of technology and services. It employs
roughly 375,000 associates worldwide (as of December 31, 2015). According to
preliminary figures, the company generated sales of more than 70 billion euros in 2015.
Its operations are divided into four business sectors: Mobility Solutions, Industrial
Technology, Consumer Goods, and Energy and Building Technology.
PT Robert Bosch distributes:
Spare Parts
Drive and Control
Section 1
AT A GLANCE
1. Commenced operation in 2008
2. German owned automotive parts
manufacturer
3. Leading global supplier of technology and
services
PT. Robert Bosch
24
PT. Robert Bosch
Palma Tower, 10th floor,
Jl. RA Kartini II-S Kav.6
Jakarta Selatan 12310
Ralf von Baer
President Director
Email: Ralf.vonBaer@id.bosch.com
Jonatan Kurnia
Sales Engineering
Erdiajeng Mukti
Head of Indirect Purchasing
Section 2
Other European Automotive Tier 1 Suppliers
25
The full version of the Indonesia AutoBook includes profiles of the following companies.
You can order your subscription to Indonesia AutoBook here.
Chapter 8
Asian Tier 1
PT APM Armada Autoparts was established in 2002 and
operates as a subsidiary of Auto Parts Holdings Sdn Bhd in
Malaysia.
In 1978, Auto Parts Manufacturers Co. Sdn. Bhd. (APM-Co) was established to produce
leaf springs, shock absorbers, seats & radiators. In 1992-1993, all of their auto parts
manufacturing companies assumed "APM" identity. and by 1994, APM established the
first overseas joint venture in China.
In 1997, APM’s annual turnover has topped RM 500 million and by 2002 they have
finished the installation of its 2nd Automated Robotic Parabolic Line along with the
official signing ceremony of P.T. APM Armada Autoparts factory in Magelang, Indonesia.
PT APM Armada Autoparts produces:
Sun Visors, Floor Mats and Carpets, Door Trim, Head Linings, Service Holes, Pillar
Covering, Insulators, Package Trays, Extrusion Parts, Instrument Panels etc.
Their main customers include:
Astra Daihatsu Motor, Astra Multi Truck Indonesia, Hino Motors Manufacturing
Indonesia, Indomobil Suzuki International, Isuzu Astra Motor Indonesia, Kramayudha
Tiga Berlian Motors, Toyota Motor Manufacturing Indonesia, and PT Honda Prospect
Motor.
Section 1
AT A GLANCE
1. Business: Manufacture Automotive
Interior Components
2. Established: 2002
3. Employees: 650
PT. APM Armada Autoparts
27
PT APM Armada Autoparts
L. P Diponegoro Km 38/10717510
Jl. Raya Diponegoro
Tel: +62 21 8835 5582
Email: aaautoparts@indo.net.id
Ignatius Yulianto
Marketing
Section 2
Other Indonesian Organizations
28
The full version of the Indonesia AutoBook includes profiles of the following companies.
You can order your subscription to Indonesia AutoBook here.
Chapter 9
Organizations
The Association of Indonesia Automotive Industry Sole Agents and
the association of Automobile Assemblers were founded in 1969. In
1975 the two organizations merged into the Association of Indonesia
Sole Agents and Automobile Assemblersin 1975.
By 1985, GAIKINDO had 37 members, comprising sole agents, automobile assemblers
and manufacturers of main components.
The Association of Indonesia Automotive Industries is a non-profit organisation. All
members of GAIKINDO are companies of brand-holder agents (APM) that comprise
producers, distributors, and manufacturers.
GAIKINDO assumes domestic and international roles. Domestically, GAIKINDO
facilitates its members’ interests in relation with the Government’s policies regarding the
automotive industry. This includes policies on industry and trade, energy, tax, safety
standards, the use of technology, and environment. In global role, GAIKINDO is a
partner of the automotive industry associations in various countries, in particular with
the principal countries whose products enter the Indonesian automotive market.
At the beginning of this year GAIKINDO’s Co-Chairman Mr Jongkie D Sugiarto predicted
that the domestic car market in 2016 is likely to increase by 5%. “The volume may reach
1,050,000 units, or even better 1,100,000 units,” Mr Jongkie stated during the event
“Prediction of Automotive Industry 2016” in Jakarta, Wednesday 27 January 2016.
The optimism springs from Indonesian macro economy in its National State Budget
2016. The optimism includes the government’s target on economy by 5.3% in 2016.
Other factors that boost the optimism include stronger Rupiah’s exchange rate, low
inflation, higher financing on car sales, growing global economy, infrastructure
development, and central bank rate.
Section 1
AT A GLANCE
1. Automotive organization, member of
OICA
2. Organizes annual motorshow (GAAIS)
3. Publishes monthly statistics
Gaikindo
30
The Association of Indonesia Automotive
Industries (GAIKINDO)
Jl Teuku Cik Ditiro I No 11 D-E-F, Menteng,
Jakarta Pusat 10350
Tel: +62 21 315 7178
Kukuh Kumara
Secretary
Email: gaikindo@gaikindo.or.id
Government ‘s plan to build toll roads outside Java also plays role in
boosting the optimism. “The economic growth by 5.3% makes us
optimistic,” Mr Jongkie said.
In 2015, Indonesian domestic car market booked sales of 1,013,291
units, down 16% from that in 2014 (1,2 million units). GAIKINDO is
certain that sedan sales will rise if government cuts the tax by 30%.
Another incentive that industry needs from government is tax cut for
car components, which will encourage industry.
Some carmakers have built manufacturing facilities in Indonesia with
production capacity of about 2 million units a year. Of that capacity,
200,000 units are for export that becomes backbone car
manufacturers in Indonesia, apart from the huge domestic market.
GAIKINDI is expecting that car export from Indonesia will increase to
600,000 units in the next three years.
Car Manufacturers Need to Develop Industry in Indonesia
Car manufacturers selling their products in Indonesian market are
suggested that they build industry base in Indonesia. At least, they
need to develop manufacturing facility to produce car components in
the country for the companies’ efficiency. Car manufacturers that
solely sell cars in Indonesia will face hardship out of stiff competition
with competitors that have supporting manufactures in Indonesia.
Ministry of Industry Mr Saleh Husin expressed such view in his
response to the closure of Ford’s business in Indonesia (PT Ford
Motor Indonesia, FMI) early 2016. FMI is a company that distributes
Ford brands in Indonesia, importing the entire products (CBU) from
Thailand and the Philippines.
“FMI is a brand holder agent (APM) that act as a distributor, in which
the entire cars were imported. The company does not develop any
production base Indonesia— not even component production, which
does not give significant contribution to Indonesian industry,” said the
Minister in Jakarta, Tuesday, 26 January 2016.
“Ford is losing its grip against its competitors that have developed
component manufacturing bases in Indonesia. Principals that are
determined to build component industry here are those that posses
long business orientation, serious,” the Ministry said.
He emphasized, it is important for car manufacturers to develop
production base in Indonesia to win competition once they decide to
run business in the country. “Don’t only sale cars,” he stressed.
Government Encouraging Production of Sedan in Indonesia
The Ministry of Industry is encouraging Indonesia car industry to
improve sedan production. The effort is meant to boost car export,
said The Director General for Metal, Machinery, Transportation
Equipment and Electronic Industry of the Ministry of Industry of the
Republic of Indonesia, Mr I Gusti Putu Suryawirawan.
“We need sedan production to increase in Indonesia since export
demands are mostly sedan,” said Mr I Gusti Putu Suryawirawan prior
to a meeting in his office in Jakarta.
Most car manufacturers in Indonesia nowadays produce multi purpose
vehicle (MPV) models. This is because MPV is the most favourite
model among Indonesian customers.
He explained that the Government is preparing a specific regulation on
car industry, where the step to encourage production of sedan in
Indonesia is included. The regulation is likely to be completed by
March or April 2016.
“We are facilitating the industry to boost the production of small sedan
which has specific measures in terms of taxation on luxury goods, to
improve export,” he added.
Once the regulation begins in effect, he hopes that car export from
Indonesia will pick up by 10 or 15 percent by the end of 2016. He
predicts that automotive industry is likely to experience a stagnant
market in the first semester of 2016.
31
He hopes market and production will grow during the next semester to
reach 1.1 to 1.2 million units all year through. “Car sales of 1.1 million
units are fair enough. And 1.2 million units are better off,” he said.
Car Export from Indonesia to Grow 15%
Indonesia figures out that car export in 2016 is likely to grow 15
percent from that in 2015 to reach 220,000 units. “We estimate and
hope so. We are unsure how many since there are indicators of
enabling factors,” said GAIKINDO (the Association of Indonesia
Automotive Industry) 1st Chairman, Mr Jongkie D Sugiarto.
He elaborated some basic mechanism of exporting cars from
Indonesia. He said car export is conducted by Indonesia-based
manufacturers (subsidiaries) under directions of their principals
abroad. Some Indonesia-based car manufacturers that conduct car
export include, among others, Daihatsu, Mitsubishi, Suzuki, and
Toyota— all of whose principals are from Japan.
GAIKINDO data indicates a positive trend of car export performance
through 2015. Since 2012 car export has been growing by 5 percent.
In 2012 car export from Indonesia reached 173.371 units, sliding to
170,907 units in 2013, and soaring to 202,273 units in 2014.
During January-November 2015, car export from Indonesia reached
196,875 units. The volume rose by 6.2 percent from 185,372 units of
car export from Indonesia during the same period in 2014.
32
Section 2
Other Indonesian Organizations
33
The full version of the Indonesia AutoBook includes profiles of the following organizations.
You can order your subscription to Indonesia AutoBook here.
Chapter 10
World Class
Manufacturing
Equipment
Sponsored Feature
Indonesia AutoBook Preview
Chapter 11
Events
Established in 1986, GAIKINDO CAR EXHIBITION (Pameran
Mobil GAIKINDO) hosted by GAIKINDO was the beginning of
Indonesia’s largest automotive exhibition.
The new chapter of GAIKINDO’s automotive exhibition begins under a new name of
GAIKINDO Indonesia International AUTO SHOW (GIIAS). GIIAS, is the largest auto show
in Southeast Asia, was first held from June 20 to August 30, 2015 at Indonesia
Convention Exhibition (ICE), Bumi Serpong Damai (BSD). A total of 34 brands of
vehicles from 23 Agent licensee (APM), and 2 Importers public passenger vehicles
participate in it. At 2015, GIIAS series, that includes GIIAS 2015 held at ICE, GIIAS
Makassar Auto Show 2015 (South Sulawesi), and GIIAS Surabaya Auto Show 2015
(East Java) has recorded more than 500,000 visitors, and contributed to the Indonesian
Automotive industry for as much as Rp. 6.3 trillion.
GIIAS 2016 will take place on 11 to 21 August 2016 held at Indonesia Convention
Exhibition (ICE), BSD City, Tangerang. In the second year of implementation GIIAS will
focus to bring Indonesia’s automotive exhibition to the world’s stage. GIIAS 2016 to get
the full endorsement of the international organization that oversees the global
automotive industry, namely OICA (Organisation Internationale des Constructeurs
d’Automobiles). And under the auspices of
OICA, GIIAS become one of the series of
world-class international auto shows like
NAIAS – Detroit Auto Show, IAA –
Frankfurt Auto Show etc.
Section 1
AT A GLANCE
1. Next event: 10-20 August 2017
2. Indonesia Convention Exhibition (ICE)
BSD
3. Opening, VIP & Press Day: 10 August 2017
GAIKINDO Indonesia International Auto Show
37
Organizer: Association of Indonesian
Automotive Industries (GAIKINDO)
Jl. HOS Tjokroaminoto N° 6, Menteng
Jakarta 10350
Tel: +62 21 315 7178
Email: gaikindo@cbn.net.id
Johnny Darmawan
Chief of Organising Committee
Andy Wismarsyah
Chief of Executive Committee


Diah Puh Wulandri
Press Officer
Section 2
Other Indonesian Automotive Events
38
The full version of the Indonesia AutoBook includes profiles of the following Events.
You can order your subscription to Indonesia AutoBook here.
Chapter 12
Media
The Jakarta Post is a daily English language newspaper
in Indonesia. The paper is owned by PT Bina Media
Tenggara, and the head office is in the nation's capital, Jakarta.
The Jakarta Post was started as a collaboration between four Indonesian media under
the urging of Information Minister Ali Murtopo and politician Jusuf Wanandi. After the
first issue was printed on 25 April 1983, it spent several years with minimal
advertisements and increasing circulation. After a change in chief editors in 1991, it
began to take a more vocal pro-democracy point of view. The paper was one of the few
Indonesian English-language dailies to survive the 1997 Asian financial crisis and
currently has a circulation of about 40,000.
The Jakarta Post also features both a Sunday and
Online edition, which go into detail not possible in the
daily print edition. It is targeted at foreigners and
educated Indonesians, although the middle-class
Indonesian readership has increased. Noted for being a
training ground for local and international reporters, The
Jakarta Post has won several awards and been
described as being "Indonesia's leading English-
language daily". The Jakarta Post is a member of Asia
News Network.
Section 1
AT A GLANCE
1. English newspaper based in Jakarta
2. Founded in 1983
The Jakarta Post
40
The Jakarta Post
3rd Floor, Gedung The Jakarta Post
Jl. Palmerah Barat 142-143 Jakarta 10270
Tel: +62 21 530 0476
Email: editorial@thejakartapost.com
Endy M. Bayuni
Senior Editor
Ati Nurbaiti
Senior Editor
Nezar Patria
Digital Editor-in-Chief
Section 2
Other Indonesian Automotive Events
41
The full version of the Indonesia AutoBook includes profiles of the following Media.
You can order your subscription to Indonesia AutoBook here.
Acknowledgements
about this book
xliii
© 2017 Kaiser International Limited
Publisher: Uli Kaiser
uli@autobook.biz 

Editorial Contact: Tilmann Kaiser 

tilmann@autobook.biz 



Thanks to everyone supporting this publication with resources, information, data,
feedback.
Copyright of all company logos are with the respective companies
Copyright of all car photographs are with the respective companies
Copyright of all product photographs are with the respective companies
Copyright of all web site photographs are with the respective companies
Kaiser International Limited 

Markthallenstr. 2, 78315 Radolfzell, Germany
Phone +49 7732 9456842 

Mobile +49 151 1183 0804

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Indonesia AutoBook Preview

  • 2. ii WELCOME!
 Indonesia is the largest automotive market in ASEAN – with 250 million people and a car population of only 40 cars per thousand people, a significant potential for growth. Japanese OEMs are dominating the Indonesian market with Daihatsu/Toyota being the market leaders and the Mini MVP (Multipurpose Vehicle) the preferred segment. The information in this edition was compiled over the past years from personal research, the internet and with the support of friends at automotive companies, automotive organizations, industrial estates and business organizations. I am sure this book will give you lots of information and inspire you to do business in Indonesia. How to use the Indonesia AutoBook The information was compiled from personal research, internet research with support of friends at automotive companies, automotive organizations, industrial estates and business associates. This AutoBook helps you to understand the market and identify potential customers or suppliers: 1) Business Development - managers who seek to identify potential customers and sales opportunities in the Indonesia automotive industry 2) Outsourcing – local and international commodity managers, buyers who are looking to source Automotive components from Indonesia 3) Localization – international managers desiring to expand their market and set up a footprint in Indonesia – either for distribution or local production. Focus on contacts The Indonesia AutoBook features quick links to access web sites, Google Map locations and social media sites of the featured companies and their representatives. Simply click on the icons to connect: Bangkok, July 2017 Ulrich Kaiser
  • 4. Taiwan-made machine tools leap into new-generation manufacturing Vertically and horizontally integrated Apart from supplying advanced machining equipment to the global manufacturing market, Taiwan also provides integrated machine development solutions. The nation operates one of the world’s most prolific industry clusters, which gives its machinery makers an edge in providing complete supply chain service and one-stop machining solutions to international manufacturers. Industrial parks located across the island serve as bases of thousands of machine tool makers, assemblers, and machine part suppliers who are globally recognized for their skills and technological achievements. They support each other through cooperation and collaboration, thus enabling them to be as flexible and adaptable as possible. Upstream and downstream companies in the machinery industry are integrated vertically. Furthermore, the Taiwan machine tool sector is also aligning with other industries like information technology. By integrating horizontally, Taiwan machine tool suppliers have tapped into the strengths of other sectors to create more advanced machining applications. The rise of multifunction machines, customized machining processes, and smart automation solutions from Taiwan has greatly improve overall manufacturing performance. This is also fueling a surge in demand for hybrid machine tools. Manufacturers can easily find Taiwan-made machines that blend additive manufacturing and multi-tasking functions. Hybrid machines like these are especially well-suited for small lot production of difficult-to-cut materials required in the aerospace, medical and energy industries. Taiwan’s growing success in providing machining automation is also the result of horizontal integration. For example, energy-efficient power products from leading companies have helped makers increase the power supply efficiency of their machines by up to 90 percent. Meanwhile, automation solution providers in Taiwan have secured a number of patents for measurement applications, which can substantially improve capability to provide in-house automated handling and manufacturing execution systems (MES). Such automation systems will help realize fully automated cells in factories. Taiwan machine tool makers have mustered enough support from the nation’s technology sector, giving them the edge to create machining solutions for maximum stability, efficiency, and functionality. For manufacturers who are aiming to boost productivity and quality, Taiwan provides the most comprehensive solutions in machine tools used in different manufacturing sectors. technique can achieve deeper and more precise holes with smaller diameters. Both help enhance the range of applications of machine tools. With such high- performance machines, good production practices can be upheld by every manufacturer, whether it is located in an advanced nation or a developing country. This also means future machines can level the playing field, which will give underdeveloped economies the opportunity to develop their fledging manufacturing sector with the help of advanced machine tools from Taiwan. Taiwan of late has also made significant inroads in the development of large- sized, multi-axis machines, thus giving a number of local machine tool builders the leverage to compete on the global stage. Several Taiwanese companies specialize in 5-axis, high-speed, double-column, and moving-column machining centers that are extensively used in aviation manufacturing. And so international manufacturers who are sourcing for machine tools that could meet their production requirements do not have to look far as Taiwan offers all sorts of industry-specific machines that can verily meet their expectations and budget. www.twmt.tw Local machinery manufacturers are pillars of Taiwan’s economy: they have for many years maintained a distinct and irreplaceable role in the production sector, especially in the development and supply of machine tools. Nearly every producer who succeeded in the manufacturing market has them to thank for. According to a WTO statistics report, Taiwan placed second among the world’s top contributors to the global value chain in 2015, with nearly 70% of its manufactured goods and services exported worldwide. This evidently shows the extent of Taiwan’s involvement in global trade. On industrial machinery development, Taiwan has managed to preserve a sterling reputation in the global market. This Asian manufacturing powerhouse is ranked alongside the world’s top five exporters and top seven producers of machine tools used in various industries, including automotive, electronics, information and communication technology, aerospace, and large-scale infrastructure. From conventional machine tools to future production facilities Taiwan-made machine tools offer better price-performance ratio than similar ones made by other countries. Each is designed, built, and equipped entirely in- house to ensure utmost quality and machining precision. Machine tools that are exported by Taiwan can be broadly classified into two categories: Conventional machine models with classic features Sophisticated machining units (e.g., EDM, ultrasonic/laser machine tools, electrochemical grinder, photochemical milling machine, and large-scale multi-axis machine) Taiwan’s sophisticated ability in building machine tools is a product of over several decades of manufacturing experience. Locally made machining equipment, such as vertical CNC, lathe, milling machine, drill press, and grinding machine, bears the hallmark of manufacturing flexibility that only Taiwanese builders can execute flawlessly. Providing a range of machining models that meet the requirements of industrial end-users, these unsung heroes have helped put Taiwan on the global machinery map. The nation supplies various types of grinders that include cylindrical, surface, internal and centerless. These boast superior stability and rigidity, which are exactly what manufacturers of automotive gear shafts, auto components, electronics, IT gadgets, and mold dies needed. Taiwan also provides an assortment of vertical and horizontal CNC lathes. Variations in design and functionality of these types distinguish one from another. New-generation lathes also have been launched recently, which feature enhanced operations for better milling, drilling, tapping, and spindle performance. As the global manufacturing sector moves toward simplifying once complicated machining processes down to single a setup, many local machine tool builders are stepping up to the challenge. So far, improvements in machine design successfully eliminate many machining failures resulting from vibrations and drastic temperature changes. New models rolled out of several factories in Taiwan overcome the limitations of traditional machining processes. They feature optimum cutting accuracy, temperature control, and running stability, with every detail considered for modern machining. With all the advances, global manufacturers have more and better options than just conventional processes. Machine buyers could easily notice the differences. Take an EDM for example, locally made EDMs deliver excellent cutting precision, which is made possible by combining linear motor technology and the latest auto wire threading mechanism to meet multi-angle manufacturing requirements. Another good example is the drilling machine. Two types dominate the market currently: ultrasonic drilling ensures machining stability, reduces chipping, and allows micro-hole machining of hard and brittle materials, while laser (1) (2)
  • 5. Taiwan-made machine tools leap into new-generation manufacturing Vertically and horizontally integrated Apart from supplying advanced machining equipment to the global manufacturing market, Taiwan also provides integrated machine development solutions. The nation operates one of the world’s most prolific industry clusters, which gives its machinery makers an edge in providing complete supply chain service and one-stop machining solutions to international manufacturers. Industrial parks located across the island serve as bases of thousands of machine tool makers, assemblers, and machine part suppliers who are globally recognized for their skills and technological achievements. They support each other through cooperation and collaboration, thus enabling them to be as flexible and adaptable as possible. Upstream and downstream companies in the machinery industry are integrated vertically. Furthermore, the Taiwan machine tool sector is also aligning with other industries like information technology. By integrating horizontally, Taiwan machine tool suppliers have tapped into the strengths of other sectors to create more advanced machining applications. The rise of multifunction machines, customized machining processes, and smart automation solutions from Taiwan has greatly improve overall manufacturing performance. This is also fueling a surge in demand for hybrid machine tools. Manufacturers can easily find Taiwan-made machines that blend additive manufacturing and multi-tasking functions. Hybrid machines like these are especially well-suited for small lot production of difficult-to-cut materials required in the aerospace, medical and energy industries. Taiwan’s growing success in providing machining automation is also the result of horizontal integration. For example, energy-efficient power products from leading companies have helped makers increase the power supply efficiency of their machines by up to 90 percent. Meanwhile, automation solution providers in Taiwan have secured a number of patents for measurement applications, which can substantially improve capability to provide in-house automated handling and manufacturing execution systems (MES). Such automation systems will help realize fully automated cells in factories. Taiwan machine tool makers have mustered enough support from the nation’s technology sector, giving them the edge to create machining solutions for maximum stability, efficiency, and functionality. For manufacturers who are aiming to boost productivity and quality, Taiwan provides the most comprehensive solutions in machine tools used in different manufacturing sectors. technique can achieve deeper and more precise holes with smaller diameters. Both help enhance the range of applications of machine tools. With such high- performance machines, good production practices can be upheld by every manufacturer, whether it is located in an advanced nation or a developing country. This also means future machines can level the playing field, which will give underdeveloped economies the opportunity to develop their fledging manufacturing sector with the help of advanced machine tools from Taiwan. Taiwan of late has also made significant inroads in the development of large- sized, multi-axis machines, thus giving a number of local machine tool builders the leverage to compete on the global stage. Several Taiwanese companies specialize in 5-axis, high-speed, double-column, and moving-column machining centers that are extensively used in aviation manufacturing. And so international manufacturers who are sourcing for machine tools that could meet their production requirements do not have to look far as Taiwan offers all sorts of industry-specific machines that can verily meet their expectations and budget. www.twmt.tw Local machinery manufacturers are pillars of Taiwan’s economy: they have for many years maintained a distinct and irreplaceable role in the production sector, especially in the development and supply of machine tools. Nearly every producer who succeeded in the manufacturing market has them to thank for. According to a WTO statistics report, Taiwan placed second among the world’s top contributors to the global value chain in 2015, with nearly 70% of its manufactured goods and services exported worldwide. This evidently shows the extent of Taiwan’s involvement in global trade. On industrial machinery development, Taiwan has managed to preserve a sterling reputation in the global market. This Asian manufacturing powerhouse is ranked alongside the world’s top five exporters and top seven producers of machine tools used in various industries, including automotive, electronics, information and communication technology, aerospace, and large-scale infrastructure. From conventional machine tools to future production facilities Taiwan-made machine tools offer better price-performance ratio than similar ones made by other countries. Each is designed, built, and equipped entirely in- house to ensure utmost quality and machining precision. Machine tools that are exported by Taiwan can be broadly classified into two categories: Conventional machine models with classic features Sophisticated machining units (e.g., EDM, ultrasonic/laser machine tools, electrochemical grinder, photochemical milling machine, and large-scale multi-axis machine) Taiwan’s sophisticated ability in building machine tools is a product of over several decades of manufacturing experience. Locally made machining equipment, such as vertical CNC, lathe, milling machine, drill press, and grinding machine, bears the hallmark of manufacturing flexibility that only Taiwanese builders can execute flawlessly. Providing a range of machining models that meet the requirements of industrial end-users, these unsung heroes have helped put Taiwan on the global machinery map. The nation supplies various types of grinders that include cylindrical, surface, internal and centerless. These boast superior stability and rigidity, which are exactly what manufacturers of automotive gear shafts, auto components, electronics, IT gadgets, and mold dies needed. Taiwan also provides an assortment of vertical and horizontal CNC lathes. Variations in design and functionality of these types distinguish one from another. New-generation lathes also have been launched recently, which feature enhanced operations for better milling, drilling, tapping, and spindle performance. As the global manufacturing sector moves toward simplifying once complicated machining processes down to single a setup, many local machine tool builders are stepping up to the challenge. So far, improvements in machine design successfully eliminate many machining failures resulting from vibrations and drastic temperature changes. New models rolled out of several factories in Taiwan overcome the limitations of traditional machining processes. They feature optimum cutting accuracy, temperature control, and running stability, with every detail considered for modern machining. With all the advances, global manufacturers have more and better options than just conventional processes. Machine buyers could easily notice the differences. Take an EDM for example, locally made EDMs deliver excellent cutting precision, which is made possible by combining linear motor technology and the latest auto wire threading mechanism to meet multi-angle manufacturing requirements. Another good example is the drilling machine. Two types dominate the market currently: ultrasonic drilling ensures machining stability, reduces chipping, and allows micro-hole machining of hard and brittle materials, while laser (1) (2)
  • 7. Indonesia’s Automotive Industry The automotive industry is a central pillar of Indonesia’s manufacturing sector, with global corporations investing heavily to take advantage of strong growth in Southeast Asia’s biggest economy. With more than 250 million inhabitants disseminated over 17,000 islands, Indonesia is the fourth most populous nation in the world and the largest economy in the Association of South-Asian Nations (ASEAN) representing 40% of its GDP and population. The entirety of the automotive activity in the country is concentrated in Jakarta or around in West Java. Java represents 70% of national new vehicle sales, including 24% in the Jakarta province alone. Section 1 AT A GLANCE 1. Indonesia has experienced 150% growth in production and sales from 2009 to 2014 2. Vehicle sales in ASEAN have reached more than 3.1 million units and Indonesia reached the sales of nearly 1.3 million vehicles (42% of ASEAN market) 3. Value of investments in Indonesia’s automotive industry has expanded by 10-12% in 2015 or more than USD 4.3 billion 4. Toyota-Daihatsu, Nissan, Honda, Suzuki, Mitsubishi, Isuzu and Hino currently have the largest production capacities in Indonesia 5. MPVs and SUVs are to Indonesia what pick ups are to Thailand, representing two-thirds of local sales and production 6. 70% of parts still need to be imported, a situation that is supposed to change with the Low Cost Green Car program Introduction 5
  • 9. 7
  • 11. PT Astra Daihatsu Motor (Indonesia) is Daihatsu’s biggest overseas investment and also Daihatsu’s production base outside Japan. Its business is as a manufacturer and marketer of Daihatsu vehicles, components and other related business. Daihatsu operates two factories in Sunter, North Jakarta, and Karawang, West Java. Daihatsu’s Indonesian plants have a capacity of 530,000 units making it the automaker with the highest production share. At the plant that began operation in October 2012, Daihatsu also established an R&D center for the purpose of local development that is equipped with Indonesia’s first test course. Section 1 AT A GLANCE 1. Commenced operation in Indonesia in 1978 2. Production capacity: 530,000 vehicles/ year Daihatsu 9 PT Astra Daihatsu Motor Head Office and Stamping Plant Jalan Gaya Motor III/No. 5 Sunter II Jakarta Utara, DKI Jakarta 14330 Tel: +62 21 651 0300 hotline@daihatsu.astra.co.id Mr Sudirman President Director Supranoto Tirtodidjojo
 Deputy CEO Engine Plant Jl Raya Maligi VI Kawasan 
 Karawang International Industry City
 Lot M 6, Teluk Jambe 
 Bekasi 41361 Jawa Anggoro Harryajie Head of Production
  • 12. Astra Daihatsu Motor sold 185,226 units in 2014 which is an equivalent of around 15.3% of the total domestic car sales in Indonesia which was around 1.21 million units in 2013. The company launched three new vehicles in Indonesia in 2015 and the new models include the new Sirion, the Terios Spirit, and updated Xenia MPV. In 2015, Daihatsu sold 167,808 units which represents a contraction of 9% when compared to 2014 but its market share increased from 15.3% in 2014 to 16.6% in 2015 and remained as Indonesia’s second largest car seller last year. The company was able to sell 58,121 units of Daihatsu Gran Max Pickup last year which accounted for 5.7% of all models sold in the country and represents the second most popular model in Indonesia in 2015. Daihatsu’s other popular model includes Daihatsu Ayla and Daihatsu Xenia which accounted for 3.6% and 3.3% respectively and they are the seventh and ninth most popular cars in the country. 10
  • 13. Section 2 Other OEMs in Indonesia 11 The full version of the Indonesia AutoBook includes profiles of the following OEMS. You can order your subscription to Indonesia AutoBook here.
  • 15. The automotive industry is the third largest sector contributing 10% of the GDP Indonesias. The automotive cluster contributes to export and import trade flow. The automotive industry in Indonesia is centered in the West Java Region which consists of Banten, Jakarta and West Java provinces. However, there are also a small number of companies located in both Central and East Java. Section 1 AT A GLANCE 1. The Indonesian Automotive Cluster consists of about 1,000 Tier 1 and 
 550 Tier 2 suppliers. 2. This chapter deals with Indonesian or predominantly Indonesian owned companies. Introduction 13
  • 16. Poor public transportations systems is forcing people to invest in their own transportation and other market place actions has afforded more and more people the opportunity to own a vehicle. The Indonesian automobile industry is dominated mostly by family oriented vehicles. MPVs with 7 seats command almost 50% of the market share in Indonesia with pick-up trucks coming in as the second strongest segment. The automotive industry in Indonesia is expected to continue to grow over the next couple of years by demand of an emerging middle class and a strong young generation with many first time buyers. 14
  • 17. PT Astra Otoparts Tbk is the leading group of automotive component manufactures in Indonesia, producing and distributing a wide variety of two-wheeler and four-wheeler spare parts. In manufacturing business, Astra Otoparts has 4 business units, 12 consolidated subsidiaries, 18 associates and jointly controlled entities, 2 cost companies, as well as 11 active sub subsidiary companies.  Its products are split into: Electrical Group (A/C System, Mirror, Fog Lamp, Horn etc.) Engine Group (Filter, Exhaust Manifold Assy, Flywheel, Cover Assy Timing Gear etc.) Power Train and Chassis Group (Steering Knuckle, Chassis Frame, Shock Absorber etc.) Body Group (Door Lock, Hood Lock, Door Hinge, Window Regulator etc.) The customers of the company including: Toyota, Daihatsu, Isuzu, UD Trucks, Chevrolet, Hino, Honda, Hyundai, Kia, Mazda, Mercedes-Benz, Mitsubishi, Perodua, and Suzuki for four-wheelers. Honda, Yamaha, Suzuki, Kawasaki, and TVS for two-wheelers. In trading business, Astra Otoparts has a domestic business unit, an international business unit, which exports to more than 30 countries, and a retail business unit that distributes automotive components to the replacement market. The retail network, known as the brand “Shop & Drive” continues to grow. At the end of 2014, it already had more than 300 outlets spreading across the islands of Java, Bali, Kalimantan, and Sulawesi. Section 2 AT A GLANCE 1. Founded: 1997 although the company history goes back to 1976 including several changes of names 2. Business: The company is the center of a group of subcontractors active in various fields of the automotive industry 3. Employees: 37,754 PT. Astra Otoparts Tbk 15 PT. Astra Otoparts Tbk Jl. Raya Pegangsaan Dua Km. 2,2
 Kelapa Gading - Jakarta, 14250 Tel: +62 21 460 3550 Dandy Soelip Director
 Ferri Firdaus Senior Engineer Winarto Amatdihardjo Purchase Department Head Filip Gunawan Sales Operation Head
  • 18. Section 3 Other Indonesian Tier 1 Automotive Supplier 16 The full version of the Indonesia AutoBook includes profiles of the following companies. You can order your subscription to Indonesia AutoBook here.
  • 20. The Advics Group is a brake system supplier who provides advanced and high quality brake systems with components supply to the global market. The group products include: Electronic Stability Control, Anti-lock Brake System, Brake Booster, Master Cylinder, Hydraulic Booster, Load Sensing Proportioning Valve, Disc Brake and Drum Brake, Electric Parking Brake, Foot Release Parking Brake Pedal. They are also a provider of Premium Brake Pads in the aftermarket. PT Advics Manufacturing Indonesiaproduces brake components such as brake boosters, drum brakes, parking brakes. PT Advics Indonesia is in charge of sale of brake systems and components for automobile. Section 1 AT A GLANCE 1. Manufacturer of braking components for automobile 2. Belongs to the Aisin Group of companies PT Advics Manufacturing Indonesia 18 PT Advics Manufacturing Indonesia Jl. Harapan VIII Lot LL No. 9-10, Kawasan Industri KIIC, Karawang 41361 Jawa Barat Tel: +62 267 864 3141 PT Advics Indonesia East Jakarta Industrial Park (EJIP) Plot 5J Cikarang Selatan, Bekasi 17550, Jawa Barat Tel: +62 21 897 0973 Mr Mariijono Email: marijono@advics-min.co.id
  • 21. Section 2 Other Japanese Tier 1 Automotive Suppliers 19 The full version of the Indonesia AutoBook includes profiles of the following companies. You can order your subscription to Indonesia AutoBook here.
  • 23. Visteon is a global technology company that designs, engineers and manufactures innovative cockpit electronics products and connected car solutions. Visteon Corporation supplies: Instrument clusters, Audio Products, and Multi-Function Displays to the automotive industry - including passenger cars, light trucks, and motorcycles. Visteon is a global technology company that designs, engineers and manufactures innovative cockpit electronics products and connected car solutions for most of the world's major vehicle manufacturers. The company has corporate offices in US, China, and UK along with 50 manufacturing, technical and customer centers in 21 countries. Visteon manufactures automotive components and systems including interior plastic parts such as instrument panels, glove boxes, consoles, and trim sets along with electronic instrument clusters and audio units. The company in Indonesia produces: Automotive cockpit electronic manufacturer (electronic cluster, audio head unit, climate control head) Their major customers are: PT Astra Honda Motor and Visteon Automotive Electronic (Thailand) Ltd. Section 1 AT A GLANCE 1. Commenced operation in 2011 2. Shareholders: PT Astra Otoparts Tbk, Visteon Corp. PT Astra Visteon Indonesia 21 PT Astra Visteon Indonesia Jl. Lanbau RT 5/10, Kel. Karang Asem Barat Kec. Citereup, Bogor 16810 Tel: +62 21 8791 9130 Prihatanto Agung President Director Donny Novanda Director of Operations Istakhry Malik Engineering & Marketing Manager Andhika Pramasiwi Head of Purchasing
  • 24. Section 2 Other North American Tier 1 22 The full version of the Indonesia AutoBook includes profiles of the following companies. You can order your subscription to Indonesia AutoBook here.
  • 26. Bosch has been present in Indonesia since 1919. In May 2008, the company set up the wholly foreign-owned subsidiary, PT Robert Bosch, in Jakarta and has branch offices in Surabaya, Medan, Balikpapan, Semarang, Bali as well as an automotive manufacturing plant in Cikarang, Bekasi. In 2014 Bosch in Indonesia generated IDR 1638 billion (104 million euros) in sales and employed more than 198 associates (as per March 10, 2016). Bosch provides a wide range of technological products and solutions including components, diagnostic tools and equipment for automotive, drive and control technology, power tools, security systems and thermo-technology. In addition, PT BSH Home Appliances supplies household appliances and appointed local agents represent the Bosch Packaging Technology. The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). According to preliminary figures, the company generated sales of more than 70 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. PT Robert Bosch distributes: Spare Parts Drive and Control Section 1 AT A GLANCE 1. Commenced operation in 2008 2. German owned automotive parts manufacturer 3. Leading global supplier of technology and services PT. Robert Bosch 24 PT. Robert Bosch Palma Tower, 10th floor, Jl. RA Kartini II-S Kav.6 Jakarta Selatan 12310 Ralf von Baer President Director Email: Ralf.vonBaer@id.bosch.com Jonatan Kurnia Sales Engineering Erdiajeng Mukti Head of Indirect Purchasing
  • 27. Section 2 Other European Automotive Tier 1 Suppliers 25 The full version of the Indonesia AutoBook includes profiles of the following companies. You can order your subscription to Indonesia AutoBook here.
  • 29. PT APM Armada Autoparts was established in 2002 and operates as a subsidiary of Auto Parts Holdings Sdn Bhd in Malaysia. In 1978, Auto Parts Manufacturers Co. Sdn. Bhd. (APM-Co) was established to produce leaf springs, shock absorbers, seats & radiators. In 1992-1993, all of their auto parts manufacturing companies assumed "APM" identity. and by 1994, APM established the first overseas joint venture in China. In 1997, APM’s annual turnover has topped RM 500 million and by 2002 they have finished the installation of its 2nd Automated Robotic Parabolic Line along with the official signing ceremony of P.T. APM Armada Autoparts factory in Magelang, Indonesia. PT APM Armada Autoparts produces: Sun Visors, Floor Mats and Carpets, Door Trim, Head Linings, Service Holes, Pillar Covering, Insulators, Package Trays, Extrusion Parts, Instrument Panels etc. Their main customers include: Astra Daihatsu Motor, Astra Multi Truck Indonesia, Hino Motors Manufacturing Indonesia, Indomobil Suzuki International, Isuzu Astra Motor Indonesia, Kramayudha Tiga Berlian Motors, Toyota Motor Manufacturing Indonesia, and PT Honda Prospect Motor. Section 1 AT A GLANCE 1. Business: Manufacture Automotive Interior Components 2. Established: 2002 3. Employees: 650 PT. APM Armada Autoparts 27 PT APM Armada Autoparts L. P Diponegoro Km 38/10717510 Jl. Raya Diponegoro Tel: +62 21 8835 5582 Email: aaautoparts@indo.net.id Ignatius Yulianto Marketing
  • 30. Section 2 Other Indonesian Organizations 28 The full version of the Indonesia AutoBook includes profiles of the following companies. You can order your subscription to Indonesia AutoBook here.
  • 32. The Association of Indonesia Automotive Industry Sole Agents and the association of Automobile Assemblers were founded in 1969. In 1975 the two organizations merged into the Association of Indonesia Sole Agents and Automobile Assemblersin 1975. By 1985, GAIKINDO had 37 members, comprising sole agents, automobile assemblers and manufacturers of main components. The Association of Indonesia Automotive Industries is a non-profit organisation. All members of GAIKINDO are companies of brand-holder agents (APM) that comprise producers, distributors, and manufacturers. GAIKINDO assumes domestic and international roles. Domestically, GAIKINDO facilitates its members’ interests in relation with the Government’s policies regarding the automotive industry. This includes policies on industry and trade, energy, tax, safety standards, the use of technology, and environment. In global role, GAIKINDO is a partner of the automotive industry associations in various countries, in particular with the principal countries whose products enter the Indonesian automotive market. At the beginning of this year GAIKINDO’s Co-Chairman Mr Jongkie D Sugiarto predicted that the domestic car market in 2016 is likely to increase by 5%. “The volume may reach 1,050,000 units, or even better 1,100,000 units,” Mr Jongkie stated during the event “Prediction of Automotive Industry 2016” in Jakarta, Wednesday 27 January 2016. The optimism springs from Indonesian macro economy in its National State Budget 2016. The optimism includes the government’s target on economy by 5.3% in 2016. Other factors that boost the optimism include stronger Rupiah’s exchange rate, low inflation, higher financing on car sales, growing global economy, infrastructure development, and central bank rate. Section 1 AT A GLANCE 1. Automotive organization, member of OICA 2. Organizes annual motorshow (GAAIS) 3. Publishes monthly statistics Gaikindo 30 The Association of Indonesia Automotive Industries (GAIKINDO) Jl Teuku Cik Ditiro I No 11 D-E-F, Menteng, Jakarta Pusat 10350 Tel: +62 21 315 7178 Kukuh Kumara Secretary Email: gaikindo@gaikindo.or.id
  • 33. Government ‘s plan to build toll roads outside Java also plays role in boosting the optimism. “The economic growth by 5.3% makes us optimistic,” Mr Jongkie said. In 2015, Indonesian domestic car market booked sales of 1,013,291 units, down 16% from that in 2014 (1,2 million units). GAIKINDO is certain that sedan sales will rise if government cuts the tax by 30%. Another incentive that industry needs from government is tax cut for car components, which will encourage industry. Some carmakers have built manufacturing facilities in Indonesia with production capacity of about 2 million units a year. Of that capacity, 200,000 units are for export that becomes backbone car manufacturers in Indonesia, apart from the huge domestic market. GAIKINDI is expecting that car export from Indonesia will increase to 600,000 units in the next three years. Car Manufacturers Need to Develop Industry in Indonesia Car manufacturers selling their products in Indonesian market are suggested that they build industry base in Indonesia. At least, they need to develop manufacturing facility to produce car components in the country for the companies’ efficiency. Car manufacturers that solely sell cars in Indonesia will face hardship out of stiff competition with competitors that have supporting manufactures in Indonesia. Ministry of Industry Mr Saleh Husin expressed such view in his response to the closure of Ford’s business in Indonesia (PT Ford Motor Indonesia, FMI) early 2016. FMI is a company that distributes Ford brands in Indonesia, importing the entire products (CBU) from Thailand and the Philippines. “FMI is a brand holder agent (APM) that act as a distributor, in which the entire cars were imported. The company does not develop any production base Indonesia— not even component production, which does not give significant contribution to Indonesian industry,” said the Minister in Jakarta, Tuesday, 26 January 2016. “Ford is losing its grip against its competitors that have developed component manufacturing bases in Indonesia. Principals that are determined to build component industry here are those that posses long business orientation, serious,” the Ministry said. He emphasized, it is important for car manufacturers to develop production base in Indonesia to win competition once they decide to run business in the country. “Don’t only sale cars,” he stressed. Government Encouraging Production of Sedan in Indonesia The Ministry of Industry is encouraging Indonesia car industry to improve sedan production. The effort is meant to boost car export, said The Director General for Metal, Machinery, Transportation Equipment and Electronic Industry of the Ministry of Industry of the Republic of Indonesia, Mr I Gusti Putu Suryawirawan. “We need sedan production to increase in Indonesia since export demands are mostly sedan,” said Mr I Gusti Putu Suryawirawan prior to a meeting in his office in Jakarta. Most car manufacturers in Indonesia nowadays produce multi purpose vehicle (MPV) models. This is because MPV is the most favourite model among Indonesian customers. He explained that the Government is preparing a specific regulation on car industry, where the step to encourage production of sedan in Indonesia is included. The regulation is likely to be completed by March or April 2016. “We are facilitating the industry to boost the production of small sedan which has specific measures in terms of taxation on luxury goods, to improve export,” he added. Once the regulation begins in effect, he hopes that car export from Indonesia will pick up by 10 or 15 percent by the end of 2016. He predicts that automotive industry is likely to experience a stagnant market in the first semester of 2016. 31
  • 34. He hopes market and production will grow during the next semester to reach 1.1 to 1.2 million units all year through. “Car sales of 1.1 million units are fair enough. And 1.2 million units are better off,” he said. Car Export from Indonesia to Grow 15% Indonesia figures out that car export in 2016 is likely to grow 15 percent from that in 2015 to reach 220,000 units. “We estimate and hope so. We are unsure how many since there are indicators of enabling factors,” said GAIKINDO (the Association of Indonesia Automotive Industry) 1st Chairman, Mr Jongkie D Sugiarto. He elaborated some basic mechanism of exporting cars from Indonesia. He said car export is conducted by Indonesia-based manufacturers (subsidiaries) under directions of their principals abroad. Some Indonesia-based car manufacturers that conduct car export include, among others, Daihatsu, Mitsubishi, Suzuki, and Toyota— all of whose principals are from Japan. GAIKINDO data indicates a positive trend of car export performance through 2015. Since 2012 car export has been growing by 5 percent. In 2012 car export from Indonesia reached 173.371 units, sliding to 170,907 units in 2013, and soaring to 202,273 units in 2014. During January-November 2015, car export from Indonesia reached 196,875 units. The volume rose by 6.2 percent from 185,372 units of car export from Indonesia during the same period in 2014. 32
  • 35. Section 2 Other Indonesian Organizations 33 The full version of the Indonesia AutoBook includes profiles of the following organizations. You can order your subscription to Indonesia AutoBook here.
  • 39. Established in 1986, GAIKINDO CAR EXHIBITION (Pameran Mobil GAIKINDO) hosted by GAIKINDO was the beginning of Indonesia’s largest automotive exhibition. The new chapter of GAIKINDO’s automotive exhibition begins under a new name of GAIKINDO Indonesia International AUTO SHOW (GIIAS). GIIAS, is the largest auto show in Southeast Asia, was first held from June 20 to August 30, 2015 at Indonesia Convention Exhibition (ICE), Bumi Serpong Damai (BSD). A total of 34 brands of vehicles from 23 Agent licensee (APM), and 2 Importers public passenger vehicles participate in it. At 2015, GIIAS series, that includes GIIAS 2015 held at ICE, GIIAS Makassar Auto Show 2015 (South Sulawesi), and GIIAS Surabaya Auto Show 2015 (East Java) has recorded more than 500,000 visitors, and contributed to the Indonesian Automotive industry for as much as Rp. 6.3 trillion. GIIAS 2016 will take place on 11 to 21 August 2016 held at Indonesia Convention Exhibition (ICE), BSD City, Tangerang. In the second year of implementation GIIAS will focus to bring Indonesia’s automotive exhibition to the world’s stage. GIIAS 2016 to get the full endorsement of the international organization that oversees the global automotive industry, namely OICA (Organisation Internationale des Constructeurs d’Automobiles). And under the auspices of OICA, GIIAS become one of the series of world-class international auto shows like NAIAS – Detroit Auto Show, IAA – Frankfurt Auto Show etc. Section 1 AT A GLANCE 1. Next event: 10-20 August 2017 2. Indonesia Convention Exhibition (ICE) BSD 3. Opening, VIP & Press Day: 10 August 2017 GAIKINDO Indonesia International Auto Show 37 Organizer: Association of Indonesian Automotive Industries (GAIKINDO) Jl. HOS Tjokroaminoto N° 6, Menteng Jakarta 10350 Tel: +62 21 315 7178 Email: gaikindo@cbn.net.id Johnny Darmawan Chief of Organising Committee Andy Wismarsyah Chief of Executive Committee 
 Diah Puh Wulandri Press Officer
  • 40. Section 2 Other Indonesian Automotive Events 38 The full version of the Indonesia AutoBook includes profiles of the following Events. You can order your subscription to Indonesia AutoBook here.
  • 42. The Jakarta Post is a daily English language newspaper in Indonesia. The paper is owned by PT Bina Media Tenggara, and the head office is in the nation's capital, Jakarta. The Jakarta Post was started as a collaboration between four Indonesian media under the urging of Information Minister Ali Murtopo and politician Jusuf Wanandi. After the first issue was printed on 25 April 1983, it spent several years with minimal advertisements and increasing circulation. After a change in chief editors in 1991, it began to take a more vocal pro-democracy point of view. The paper was one of the few Indonesian English-language dailies to survive the 1997 Asian financial crisis and currently has a circulation of about 40,000. The Jakarta Post also features both a Sunday and Online edition, which go into detail not possible in the daily print edition. It is targeted at foreigners and educated Indonesians, although the middle-class Indonesian readership has increased. Noted for being a training ground for local and international reporters, The Jakarta Post has won several awards and been described as being "Indonesia's leading English- language daily". The Jakarta Post is a member of Asia News Network. Section 1 AT A GLANCE 1. English newspaper based in Jakarta 2. Founded in 1983 The Jakarta Post 40 The Jakarta Post 3rd Floor, Gedung The Jakarta Post Jl. Palmerah Barat 142-143 Jakarta 10270 Tel: +62 21 530 0476 Email: editorial@thejakartapost.com Endy M. Bayuni Senior Editor Ati Nurbaiti Senior Editor Nezar Patria Digital Editor-in-Chief
  • 43. Section 2 Other Indonesian Automotive Events 41 The full version of the Indonesia AutoBook includes profiles of the following Media. You can order your subscription to Indonesia AutoBook here.
  • 45. about this book xliii © 2017 Kaiser International Limited Publisher: Uli Kaiser uli@autobook.biz 
 Editorial Contact: Tilmann Kaiser 
 tilmann@autobook.biz 
 
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