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Indonesia's First Electric Heavy Equipment Plant in Karawang to Cut Infrastructure Costs

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Indonesia's first electric heavy equipment manufacturing plant has begun construction in Karawang, West Java.
  • The factory, PT LiuGong Machinery Manufacturing Indonesia (LMMI), aims to reduce infrastructure costs by producing equipment domestically.
  • Governor Dedi Mulyadi emphasized the need for local workforce development through vocational training programs to support the industry.

West Java Governor Dedi Mulyadi hailed the groundbreaking of Indonesia's first electric heavy equipment manufacturing plant in Karawang as a significant step toward reducing infrastructure costs. The new facility, PT LiuGong Machinery Manufacturing Indonesia (LMMI), is expected to make domestic production far more competitive than relying on imported goods.

The factory, located in the Karawang Artha Industrial Hill (KAIH) area, is designed for an initial capacity of 5,000 units per year and is slated for full operation by 2027. "Heavy equipment is a fundamental need for infrastructure development. If produced domestically, the cost will be much more competitive than imported products," Mulyadi stated.

Heavy equipment is a fundamental need for infrastructure development. If produced domestically, the cost will be much more competitive than imported products.

โ€” Dedi MulyadiGovernor of West Java, explaining the economic benefits of domestic production.

To maximize the absorption of local labor, Mulyadi instructed provincial officials to collaborate with final-year high school and vocational school students. Intensive vocational training programs, lasting six to twelve months, will be implemented to equip graduates with ready-to-use skills. "We ask all ranks of the West Java Provincial Government to immediately identify 12th-grade high school or vocational school students to undergo intensive vocational training programs. The goal is that upon graduation, they will have become skilled and ready-to-use workers," he asserted.

The establishment of LMMI within the Indonesia Green Smart Industrial Park is planned in three phases. The initial phase will focus on assembling eco-friendly excavators and wheel loaders for the domestic market. The provincial government has pledged to ensure security and a smooth investment climate for all investors in the region. This initiative is projected to generate a multiplier effect on the regional economy and improve the Human Development Index (IPM), ultimately enhancing community welfare.

We ask all ranks of the West Java Provincial Government to immediately identify 12th-grade high school or vocational school students to undergo intensive vocational training programs. The goal is that upon graduation, they will have become skilled and ready-to-use workers.

โ€” Dedi MulyadiInstructing officials on workforce development initiatives for the new factory.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.