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- 1. Manufacturing Industry in Indonesia
By: Vito Agnar Rizaly
- 2. Introduction
Manufacturing industries are the sectors of production that process or reprocess industrial and agricultural raw materials.
Manufacturing industry deals with object that are already the products of labor.
- 3. Development
Development of cable manufacturing industry in Indonesia
The country's cable industry was badly hit by the 1998 crisis. Until 2004, operation of the production capacity of the industry was only around 25%- 30% of established production capacity.
The fast growing order for electricity has forced the government to launch an ambitious plan called crash program to build coal / oil fired power plants with a total capacity of 10,000 megawatts to be completed in 2010-2011.
- 4. The revival of the cable market in 2007 and 2008 was reflected by the financial performance of listed cable producers. PT SumiKabel reported sales at only Rp.976 billion in 2004. In 2006 it sales up to Rp1,914 billion . Similarly, sales of PT Supreme Cable (SUCACO) flowed to Rp2,281 billion in 2007 from Rp1,483 billion in 2006.
Increase in the prices of basic materials like copper contributed to the problem faced by cable industry lately. Many cable producers suffered losses on foreign exchange as they bought the basic materials in US dollar the value of which surgedfacing the rupiah.
- 5. Cable producers and production capacity
After the 1998 crisis , there wasalmost no addition in the number of cable factories and installed capacity. The member of the association of cable producers (APKABEL), which groups almost all cable factoriesin the country did not change much. In 1997, there were 35 members of the association and 2006, the number slightlydeclined to 34 companies.
- 6. Currently there are 15 major cable makers in Indonesia. Most of them are old companies like PT Tranka Kabel that came on line in 1952. PT Sumi Indo KabelTbk (Perusahaan) was established on 23 July 1981, with the name of PT IndustriKawat Indonesia. The name of the company was changed with PT IKI Indah Kabel Indonesia in 1982. And many more companies.
- 7. Role of Secondary Industry in Indonesia
Indonesian manufacturing industry plays an important role since we are aware that we cant rely on oil and gas exports.
Export manufacturing industry contributed about 83-85% of non-oil exports and about 64-67% of Indonesias total exports during 1994 2005.
Manufacturing industry almost maintain economic growth in Indonesia.
- 8. Systems of manufacturing
Craft or Guild system
English system of manufacturing
American system of manufacturing
Soviet collectivism in manufacturing
- 9. Rapid manufacturing
Packaging and labeling
- 10. Bibliography
1. (2009) (DEVELOPMENT OF CABLE MANUFACTURING INDUSTRY IN INDONESIA) (Thurs, 29th July 2010)
2. (2009) (Engineering to be recognized as the excellent engineering faculty) (Thurs, 29th July 2010)
3. (2009) (PeranIndustriManufaktur) (Mon, 2nd August 2010)
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