Indonesia breaks ground on first electric heavy equipment factory

Indonesia has taken a significant step towards advancing its industrial capabilities with the groundbreaking for its first electric heavy equipment factory. Located in the Karawang Artha Industrial Hill (KAIH) in Karawang Regency, West Java, the facility is operated by LiuGong Machinery Manufacturing Indonesia (LMMI).

The factory's establishment marks a milestone as it will be the first in Indonesia dedicated to manufacturing electric heavy equipment. Governor of West Java, Dedi Mulyadi, who attended the ceremony on Tuesday, July 22, 2026, emphasized the importance of heavy machinery for accelerating infrastructure development across the province.

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If produced domestically, the cost will be far more competitive than imported products. We hope regulations can support the industry to distribute directly to consumers without long intermediaries, so the price is more affordable.

Mulyadi highlighted that producing this equipment domestically will significantly reduce costs compared to imported products. He expressed hope for supportive regulations that would allow direct distribution to consumers, making the equipment more affordable. This cost efficiency in heavy equipment procurement is expected to lower infrastructure production costs, thereby improving the financial management of the state, companies, and other production sectors.

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The increase in HDI will directly impact citizen welfare, leading to the circulation of the economic wheel because the community has income certainty.

The new industry is also projected to generate long-term economic benefits for West Java. Beyond potentially increasing regional revenue, the absorption of local labor is anticipated to drive up the Human Development Index (HDI) of West Java. This, in turn, is expected to improve citizen welfare and stimulate economic activity through stable income generation. Mulyadi stressed the need for the local workforce to develop entrepreneurial skills, not just become employees but also future business owners.

To ensure optimal absorption of the local workforce into the new industrial ecosystem, the provincial government has committed to providing security, smooth investment processes, and supporting infrastructure. Governor Mulyadi specifically instructed local government officials to identify and provide intensive vocational training for 12th-grade high school and vocational school students. This program, lasting six to 12 months, aims to equip graduates with ready-to-use skilled labor capabilities. The first phase of the LMMI factory's construction will focus on production lines for electric excavators and wheel loaders, with an annual capacity of 5,000 units.

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We ask all levels of the West Java Provincial Government to immediately identify 12th-grade high school or vocational school students to be given intensive vocational training programs for six to 12 months. The goal is that when they graduate, they will have become skilled workers who are ready to use.