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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

Karawang to become base for Indonesia's first electric heavy equipment factory

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • West Java Governor Dedi Mulyadi attended the groundbreaking ceremony for Indonesia's first electric heavy equipment factory in Karawang.
  • The factory aims to produce electric excavators and wheel loaders, making heavy equipment more affordable and boosting infrastructure development.
  • The project is expected to create jobs, increase regional revenue, and improve human development indexes in West Java.

West Java Governor Dedi Mulyadi participated in the groundbreaking ceremony for LiuGong Machinery Manufacturing Indonesia (LMMI) in Karawang, marking the establishment of Indonesia's first factory dedicated to producing electric heavy equipment.

This new facility, located in the Karawang Artha Industrial Hill (KAIH) area, signifies a major step towards localized production of eco-friendly heavy machinery. Governor Mulyadi emphasized that domestically produced heavy equipment is crucial for accelerating infrastructure development across West Java, from roads to public facilities. He highlighted that local production would significantly reduce costs compared to imported machinery, urging for supportive regulations that allow direct distribution to consumers to ensure affordability.

Heavy equipment is a fundamental need for infrastructure development. 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 lengthy intermediaries, so the price is more affordable.

โ€” Dedi MulyadiExplaining the economic benefits of domestic production of heavy equipment.

The governor believes that cost-efficient heavy equipment procurement will directly lower infrastructure production expenses, leading to better financial management for the state and companies. The LMMI factory is projected to generate long-term economic benefits for West Java, including increased regional revenue and job creation. Mulyadi anticipates that this will drive up the Human Development Index (HDI) for the province, ultimately enhancing residents' welfare and stimulating the economy.

To maximize the benefits, Mulyadi stressed the importance of fostering entrepreneurship among the local workforce, enabling them not only to secure employment but also to become business owners. The provincial government has pledged to ensure investment security, smooth operations, and adequate supporting infrastructure to maintain West Java's reputation as an investment-friendly region. Furthermore, Governor Mulyadi instructed officials to prepare local human resources through intensive vocational training programs, ensuring graduates are skilled and ready for the new industry.

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

โ€” Dedi MulyadiInstructing the preparation of local human resources 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.