Taiwan Machinery Industry Transfers to Indonesia

In response to the shortage of jobs and wages in mainland China, Japanese companies have long sought to set up factories in other regions to reduce costs. In recent years, Indonesia has been one of the few emerging markets that are not affected by the global economy. In this glorious scene, Taiwan’s Machine Tool Industry Union stated that the industry would naturally not miss this opportunity. In 2012, Taiwan’s machinery industry transferred to Indonesia in response to the Japanese supply chain, and also participated in the Indonesian Manufacturing Industry Exhibition. The number of exhibitors in Taiwan has exceeded 100, and the scale has reached a new level in history.

The scope covered in the exhibition in Indonesia includes machine tools, spare parts, hand tools, and greening equipment. It is not difficult to see from the exhibition the rapidly growing Indonesian market, and the huge amount of investors who come from all over the world are not only open to the 32. The 1,000-square-meter Jakarta International Exhibition Center also temporarily set up over 6,000 square meters of temporary exhibition space, bringing the total number of booths to 2,500. Among the exhibitors, there are about 100 exhibitors from Taiwan, and a total of nearly 180 booths were used. Such a large number of participants let the representatives of the trade unions call the event unprecedented.

Among foreign investors investing in Indonesia, Japanese companies are the largest, although in the past Japanese companies always focused on global distribution while also advocating Japanese goods, but in recent years, with the drastic changes in the general environment and the appreciation of Japanese currency, there are no factors to change, many Japanese companies abandon traditional patriotic actions and have faced the waves of the market with practical attitudes. They no longer dominate the situation of the national race. This has created a niche market for mid-to-high-end manufacturers in Taiwan because Taiwan’s machine tools are more cost-effective than many countries in terms of the quality of their machine tools. Therefore, Taiwanese manufacturers have gradually entered the Indonesian market with high-end technologies. The Japanese business supply chain created a phenomenal event until the 2012 show. The export of machinery and equipment in 2012 was lower than that in 2011, but the phenomenon of growth in exporting Indonesia made the Indonesian market become the fifth largest exporter of Taiwan's machinery industry. In terms of export of machine tools, Indonesia also became a country. The country that exported the sixth machine tool.

A senior member of the Machine Tool Trade Union stated that it will pay close attention to the global trend and express confidence in the stamina of the Indonesian market.