The automation industry grows around 10-15% annually in Indonesia. With Indonesia’s gradual integration with the world economy, it will play an important role in bringing down costs.
- The global industrial automation market is expected to reach more than US$200 billion in 2015
- In 2012, the Asia-Pacific region’s industrial automation expenditures accounted for US$76.6 billion (46 percent of global investments).
- According to the Department of Industry, in 2009 Indonesia’s imports of factory machines increased by over 68% to US$15 billion.
- The largest buyers of automation equipment in Indonesia are the oil & gas sector and consumer goods sector.
- One of the world’s largest automation companies — Rockwell — started its business in Indonesia in 1994.
Besides reducing costs, automation will also help increase productivity, efficiency, aesthetics and delivery systems. It is necessary in many industries where production standards are increasing and labor is becoming more expensive. These conditions push many industries to move from manual labor to semi-automation or full-automation. Automation is mostly used in the manufacturing process and industry processes such as food and chemical industry. Automation can used for smart building systems for hotels and office building, etc.
Global Industrial Automation
The global industrial automation market is forecast to reach more than US$200 billion in 2015, according to IMS Research. Three key factors are expected to transform the face of industrial automation: energy efficiency, advanced technology and emerging economies. In 2012, Asia, the largest consumer of industrial automation products, accounted for about 46 percent of the global market — approximately US$ 76.6 billion. According to the Department of Industry, in 2009 Indonesia’s imports of factory machines increased by over 68% to US$15 billion. This was due to manufacturing industry growth that was driven by business expansions, new factories, increased production and new investment.
As South Korean and Taiwanese firms lead the industry, Indonesia will become the region’s production hub and the factory for Southeast Asia. The country’s current GDP growth and influx of investment, have made it a center of global attention and many manufacturing companies from abroad plan to establish — or already have established — a manufacturing plant in Indonesia. These industries include automotive manufacturers (Toyota, Honda, General Motors, Yamaha, Daihatsu, Suzuki, VW, Tata Motors, Mitsubishi, Kia), consumer goods (Nestle, Unilever, Indofood, Frisian Flag, Santos Jaya Abadi, Heinz ABC, Johnson & Johnson) and automation technology (Omron, Del, Yokogawa, Rockwell, Schneider Electric, Siemens).
The largest buyer of automation equipment is the oil and gas industry because Indonesia has plentiful natural sources of coal and oil. Oil and gas companies have to invest regularly in integrated automation technologies to be more transparent, given the various regulations related to performance and tighter limitations on carbon emissions. Fast moving consumer goods manufacturers in Indonesia also greatly rely on automation equipment because of their huge production capacities. Rockwell, one of the main automation manufacturers in Indonesia, started its business in Indonesia in 1994. Rockwell clients in the country are primarily from the oil and gas sector, as well as consumer goods and industrial goods.
Continuing growth in the minimum wage and the resulting increase in production costs highlights the need for automation in Indonesia.
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