First in Indonesia: West Java to Host Electric Heavy Equipment Factory in Karawang
West Java Governor Dedi Mulyadi (KDM) stated that the presence of the LiuGong Machinery Manufacturing Indonesia (LMMI) factory is a breath of fresh air for the manufacturing industry in West Java and nationally. The factory will produce electric heavy equipment in Indonesia.
Dedi Mulyadi conveyed that the availability of heavy equipment is a fundamental requirement for accelerating infrastructure development in West Java, including road access, buildings, waterways, and other public facilities. He made these remarks while attending the groundbreaking ceremony for the LMMI heavy equipment factory at the Karawang Artha Industrial Hill (KAIH) in Karawang Regency.
“Heavy equipment is a fundamental need in infrastructure development. If produced domestically, the cost will be far more competitive compared to imported products. We hope that regulations can support the industry so it can distribute directly to consumers without lengthy intermediaries, making prices more affordable,” said Dedi Mulyadi in a written statement.
According to KDM, price efficiency in procuring heavy equipment will directly impact the reduction of infrastructure production costs. This, in turn, will streamline the management of state finances, companies, and other production sectors.
The presence of this industry is also projected to provide a long-term multiplier effect for the West Java economy. Besides potentially increasing regional income, labour absorption from this sector is expected to boost the province’s Human Development Index (HDI).
“An increase in HDI will directly impact citizens’ welfare, leading to a more robust economic cycle because people will have income certainty. However, with one important note: the community must also be educated to have an entrepreneurial spirit, so they are not only absorbed as employees but also develop into entrepreneurs,” he stressed.
Furthermore, the West Java Provincial Government affirmed its commitment to providing security guarantees, investment certainty, and supporting infrastructure readiness for investors, in order to maintain West Java’s reputation as an investment-friendly region.
Specifically, KDM also instructed the West Java Provincial Government to prepare competent local human resources (HR) to be optimally absorbed by this newly built industrial ecosystem.
“We ask all ranks of the West Java Provincial Government to immediately identify 12th-grade high school or vocational school students to be given an intensive vocational training programme lasting six to twelve months. The goal is that upon graduation, they will already be skilled and ready-to-use workers,” he concluded.
For information, the construction of LMMI in the Indonesia Green Smart Industrial Park area will be carried out in three phases. The first phase includes the construction of production lines for electric excavators and wheel loaders with a production capacity of up to 5,000 units per year, targeted to be fully operational by 2027.