The Second Stage Of Sany Groundbreaking Producer In Karawang, Minister Of Industry Agus: It Is Hoped That It Can Create Supply Chains

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Theresia Agatha/VOi)

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita welcomed the construction of the second phase of the heavy equipment factory from China carried out by PT Sany Machinery Indonesia in Karawang, West Java.

Minister of Industry Agus said that the heavy equipment industry is currently one of the industrial sectors that supports economic growth, and industrial products can be used for the mining, infrastructure, and plantation sectors.

The increasing need for heavy equipment, which this year is predicted to reach 20,000 units of heavy equipment.

Meanwhile, the current production capacity of the heavy equipment industry is still around 10,000 units per year.

"With the expansion of PT Sany Indonesia Machinery, which is one of the main industries of heavy equipment, it is hoped that it can increase added value in the country, create supply chains and employment opportunities, and support downstreaming in the mining sector in accordance with President Jokowi's program," Agus said in Karawang, West Java, Tuesday, September 12.

Agus said that the new investment in this sector, especially in the hydro-excavator, could later increase the production capacity of heavy equipment, so that it could meet domestic needs.

"With (the start of the construction of this second phase of the factory), the company's production capacity will increase from 2,000 units to 5,000 units per year, it is hoped that it will contribute more to national economic growth," he said.

In addition, Agus said, this new investment in the heavy equipment industry is expected to attract new investments in the heavy equipment support industry ecosystem, namely the heavy equipment component industry, such as the stocket excavator fabrication industry, as well as the heavy equipment sub-component industry such as the tube industry and other subcomponent casting.

"On this occasion, we give our appreciation to all stakeholders and the Board of Directors of PT Sany Indonesia Machinery for its commitment to building the heavy equipment industry in Indonesia. We congratulate you on today's ground breaking, good luck and have an impact on mutual welfare," he concluded.

Previously reported, heavy equipment manufacturer from China Sany will resume construction of the second phase of production center in Karawang, West Java, this year.

Sany itself is a producer who produces various types of heavy equipment such as excavators, molens, and others.

"The construction of the second phase has begun. So, the target is to build it in December 2024," said President Director of Sany Heavy Machinery Co., Ltd Chen Jiayuan at a press conference in Karawang, West Java, Tuesday, September 12.

Chen added that his party had invested up to 150 million US dollars for development in this second phase.

He also said that later there would be around 7,000 units of heavy equipment to be produced, consisting of 5,000 excavator units and 2,000 trucks.

"For the workforce that will be absorbed as many as 2,000 employees and the total number of assets for these two stages of factory (factories) is worth US $ 5 billion.