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IOL News
9 hours ago
- Automotive
- IOL News
BRICS+ Series: Indonesia Joins the World's Top 10 Manufacturing Nations
This handout picture taken and released on July 3, 2024 by the Indonesian Presidential Palace shows Indonesian President Joko Widodo (R) speaking with Hyundai Motor Group Executive Chairman Chung Eui-sun (C) during an inspection of the battery and electric vehicle manufacturing plant by PT Hyundai LG Indonesia-Green Power in Karawang, West Java. Indonesia's Manufacturing Global Ambitions The manufacturing sector constitutes a significant portion of Indonesia's economy, contributing 20% to the GDP and thereby playing a pivotal role in the nation's economic advancement. The majority of manufacturing operations are concentrated on the island of Java, which is home to 60% of the national population and generates 58% of the country's revenue. Indonesia's Manufacturing Growth & Key Sectors Overall, Indonesia's manufacturing sector has demonstrated consistent positive growth of 4% since 2016, despite the COVID-19 setbacks from the lockdown regulations, today the industry is ranked as the 12th largest manufacturer globally; and by 2030 the government has plans to elevate the country into the top 10 biggest economies and aiming to become a global manufacturing hub according to the Making Indonesia 4.0 strategy. One of the main areas of production include textiles, chemicals, electric vehicles (EVs), and food processing. Currently, manufacturing makes a major contribution as a source of employment, with the expansion of production, Indonesia stands to play an increasingly critical role in the various small and medium-sized enterprises which represent the majority of the sector. Government Initiatives: Making Indonesia 4.0 & Investment Attraction In order to achieve government-mandated goals such as manufacturing contributing 28% to GDP by 2045, there have been efforts to attract foreign investment for companies to operate in Indonesia's manufacturing hubs, thus supporting the increased market presence in the global supply chain. The country's geographic location is greatly beneficial in this capacity because of the Strait of Malacca- a vital channel for trading routes connecting the Pacific Ocean to the Indian and the South China Sea. BRICS+ Membership: Opportunities & Trade Expansion Following Indonesia's recent membership to BRICS+, the proximity the country has to the popular sea route makes for increased commercial activity which boosts the country's shipping, port and other coastal services. It is significantly important for its strategic geopolitical and economic characteristics, but also for security measures. By virtue of the BRICS+ bloc representing a large market, Indonesian membership could significantly increase the volume of trade flowing through or into the country. Secondly, aligned with the bloc's founding values, they seek to reshape the global economy and world order by ensuring that emerging markets and countries have a greater more equitable voice in international affairs, Indonesia has a great opportunity to influence sea trade interests, commodity pricing and global trade policies, especially considering that they recently had a trading surplus in February 2025 increasing to $3.12 billion (USD), a substantial raise from $0.83 billion the year before. Key Trade Partners & South-South Cooperation Some of the top exporting destinations that Indonesia trades with are China, the USA, India, Japan and Singapore. The top importing countries are China, USA, Japan, South Korea and Singapore. This is to potentially change because of the BRICS+ agenda promoting greater South-South cooperation to foster economic exchange and growth. China and India pose the greatest strengths in this capacity regarding the BRICS nations. China is recognised as the world's leading manufacturing nation, possessing substantial expertise in restructuring the global supply chain to be heavily centered around its operations. Furthermore, both China and India, the latter being the most populous country globally, possess vast consumer markets attributable to their large populations. India is home to a rapidly growing middle class and thus, increasing purchasing power- pivotal to the BRICS+ bloc financial cycle. Complementing this is New Delhi's robust service, telecommunications and information technology (IT) industries whose expertise can be great collaboration avenues to Indonesia for skill transfers. Challenges & The Road Ahead Indonesia aims to be a leader in manufacturing automation technologies. However, its current lack of skilled workers and infrastructure will need to be addressed to reach this goal. Recent data indicates that Indonesia's manufacturing growth is moderating. In March 2025, Indonesia's Manufacturing Purchasing Managers' Index (PMI) declined to 52.4 from 53.6 in February, signaling that while the sector is still expanding, the pace has slowed. However, foreign demand remains strong amidst rising input costs and the current volatility of international trade with the ongoing tariff wars initiating from the USA could host broader economic implications on future growth. Indonesia's strategic decision to diversify its international presence through BRICS+ membership significantly enhances the nation's prospects for realising its global manufacturing ambitions. This alliance presents opportunities to foster collaborative partnerships, bolster economic sovereignty by mitigating import dependency on raw materials, and solidify Indonesia's standing as a prominent industrial force on the world stage. Written by: *Dr Iqbal Survé Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN *Banthati Sekwala Associate at BRICS+ Consulting Group Egyptian & South African Specialist **The Views expressed do not necessarily reflect the views of Independent Media or IOL. ** MORE ARTICLES ON OUR WEBSITE ** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates
Associated Press
19-05-2025
- Business
- Associated Press
World Ai Show Indonesia: Catalyst For Indonesia's Digital Economic Transformation
JAKARTA, INDONESIA / ACCESS Newswire / May 19, 2025 / Trescon announces the 45th global edition of the World AI Show, scheduled for 8-9 July 2025 at J.W. Marriott, Jakarta, positioning Indonesia at the forefront of artificial intelligence innovation in Southeast Asia. As Indonesia's digital economy is projected to surpass $130 billion by year-end 2025, the nation stands poised to consolidate its position as Southeast Asia's preeminent technology hub. The World AI Show will serve as a critical convergence point for global technology leaders, policymakers, and investors to explore AI's transformative potential across Indonesia's rapidly evolving digital landscape. 'AI is a rapidly evolving technology with global implications, and its optimal implementation is still being explored. Open discussions among diverse stakeholders are essential in shaping its future responsibly. A thoughtful approach to AI adoption is crucial, as studying and evaluating AI-driven decisions helps companies refine their understanding and application of the technology. Events like the World AI Show provide platforms for dialogue and collaboration, contributing to discussions on governance, sustainability, and the responsible adoption of AI to ensure its safe and ethical use', Said Vince Henry Iswara, CEO of DANA INDONESIA. The exclusive gathering will provide comprehensive insights into Indonesia's 'Making Indonesia 4.0" initiative, which strategically positions artificial intelligence as the cornerstone of the nation's ambitious digital transformation agenda. This framework aligns with Indonesia's broader economic objectives of technological sovereignty and global leadership in advanced digital economies. Strategic Focus Areas The World AI Show, Indonesia will facilitate high-level discourse on critical AI implementation domains, including: Exceptional Engagement Platform The meticulously curated program will feature: Strategic Value Proposition The World AI Show represents a singular opportunity for: 'As we mark the 5th edition of World AI Show in Indonesia and the 45th globally, it reflects not just continuity but the growing relevance of Indonesia in the regional AI landscape. With national priorities like Stranas KA and Vision 2045 accelerating AI adoption, this edition brings together the leadership and expertise needed to turn ambition into real-world outcomes across sectors', said Mithun shetty, Vice chairman- Trescon. Secure your position at the forefront of Indonesia's AI revolution and join the select cohort of visionaries who will define the nation's technological trajectory for decades to come. The future of AI in Southeast Asia is being written now-ensure your organization is holding the pen. For sponsorship opportunities, speaking engagements, or attendance information, please contact: Shrikanth Prabhu Commercial Director Email: [email protected] Mobile: 8660115892 About Trescon Trescon is a global business events and consulting firm specialized in producing highly focused B2B events that connect businesses with opportunities through conferences, expos, investor connect and consulting services. For more information, visit: Media Contact PR Executive Email: [email protected] Mobile: 8848655312 PR Contact: ZEX PR WIRE [email protected] SOURCE: Trescon Global press release
Associated Press
14-05-2025
- Automotive
- Associated Press
Southeast Asia Industrial Motors Market Research Report 2024-2029, Competitive Analysis of Prominent Vendors - ABB, Siemens, WEG, Mitsubishi Electric, and TECO Electric & Machinery
DUBLIN--(BUSINESS WIRE)--May 14, 2025-- The 'Southeast Asia Industrial Motors Market Research Report 2024-2029" report has been added to offering. The Southeast Asia Industrial Motors Market was valued at USD 2.08 billion in 2023, and is projected to reach USD 2.93 billion by 2029, rising at a CAGR of 5.88% The Southeast Asia industrial motors market is highly competitive, driven by rapid industrialization, urbanization, and infrastructure developments. Key players in the Southeast Asia industrial motors market are focusing on energy-efficient motors due to increasing environmental regulations and a push for sustainability. The market is witnessing strong demand from industries like manufacturing, oil & gas, chemicals, and construction. The market in Southeast Asia has seen a surge in demand for smart motors integrated with IoT and Industry 4.0 capabilities, allowing for real-time monitoring, predictive maintenance, and improved operational efficiency. This shift aligns with the industrial sectors' drive toward automation and enhanced energy management. Furthermore, leading companies like ABB Ltd., Siemens AG, and Mitsubishi Electric are engaging in strategic partnerships and joint ventures in the region to innovate new motor technologies, particularly focusing on energy efficiency and automation to meet the regulatory and operational demands of industries such as manufacturing, oil & gas, and chemicals. Indonesia holds a dominant position in the Southeast Asia industrial motors market and is growing rapidly, driven by various sectors like manufacturing, mining, construction, and energy. These industries rely on industrial motors for automation, material handling, and operating machinery. Indonesia's industrial growth is boosted by large infrastructure projects and expanding manufacturing. As Indonesia continues to grow and develop its economy, the industrial motors market is expected to reach USD 846.17 million by 2029, with more investments in infrastructure, manufacturing, and energy sectors. Indonesia is heavily investing in infrastructure and industrial development, which increases the demand for industrial motors. The government's 'Making Indonesia 4.0" initiative aims to modernize industries and promote automation, further raising the need for motors. The country is also focused on renewable energy projects, including geothermal and hydropower, driving the demand for energy-efficient motors. Additionally, Indonesia plans to produce 3 million vehicles annually by 2030, as part of its industrialization efforts. This growth in the automotive sector will lead to greater demand for industrial motors, particularly energy-efficient and smart motor systems used in vehicle manufacturing. MARKET TRENDS The Southeast Asia industrial motors market is thriving, driven by the rapid adoption of IE3 and IE4 high-efficiency motors, which reduce energy consumption by up to 30% compared to conventional motors, offering substantial cost savings and environmental benefits. Governments in the region, such as Malaysia and Indonesia, are introducing regulations to mandate the use of these energy-efficient motors, aligning with global sustainability goals. For example, Malaysia has set a target of 80% adoption of energy-efficient motors by 2030 as part of its green industrial initiatives. The growing emphasis on industrial automation across sectors like manufacturing, mining, and energy is further accelerating the demand. Technological advancements are also making IE3 and IE4 motors more affordable, enabling wider adoption across industries and solidifying the Southeast Asia industrial motors market's expansion. The Southeast Asia industrial motors market is experiencing a significant boom, driven by the convergence of Industry 4.0 technologies such as IoT, robotics, and machine learning, which are enhancing motor intelligence and operational efficiency. These innovations enable real-time monitoring and optimization of energy usage, leading to reduced operational costs and a smaller environmental footprint. The push toward automation across various sectors is further boosting demand for advanced motors. For example, in Malaysia, the adoption of automated production systems in manufacturing grew by 15% in 2023, with motors being integral to the success of these systems. Additionally, the mining sector in Indonesia saw a 20% increase in automation investments, requiring more sophisticated motors to power automated equipment. As industries rapidly transition to fully automated production, motors equipped with IoT capabilities are becoming indispensable, with end-users viewing them as essential to staying competitive. These trends, alongside technological advancements that make motors more efficient and affordable, are driving the robust growth of the Southeast Asia industrial motors market. MARKET DRIVERS The Southeast Asia industrial motors market is experiencing rapid growth, fueled by the surge in infrastructure development across the region. Countries like the Philippines, Vietnam, and Indonesia are investing heavily in large-scale projects such as airports, highways, and rail systems, creating a significant demand for industrial motors in construction machinery, elevators, and HVAC systems. For example, Vietnam's USD 9 billion investment in infrastructure in 2023, which includes the expansion of the Tan Son Nhat International Airport, is driving the need for high-performance motors in construction equipment and power systems. Indonesia's ongoing USD 25 billion investment in its Trans-Sumatra toll road project is also increasing the demand for motors in construction machinery and material handling systems. These projects, combined with the growing urbanization and increased demand for housing, are further accelerating the Southeast Asia industrial motors market growth. Furthermore, the Southeast Asia industrial motors market is booming, driven by the rapid expansion of manufacturing industries across the region. Countries like Vietnam, Thailand, and Indonesia are seeing robust industrial growth, with Vietnam specializing in electronics, Thailand in automotive, and Malaysia in semiconductors. For instance, Vietnam's electronics manufacturing output grew by 12% in 2023, leading to increased demand for motors in assembly lines and production equipment. Thailand's automotive sector, which saw USD 2 billion in investments in 2023, is requiring advanced motors for robotics and automation in production plants. Malaysia, with its USD 30 billion semiconductor industry, continues to expand, driving the need for high-performance motors in precision machinery. This industrial boom is attracting both domestic and foreign investments despite global reshoring trends, making Southeast Asia a critical hub for manufacturing. As a result, the growing demand for motors across industries like automotive, electronics, and semiconductors is accelerating the Southeast Asia industrial motors market. INDUSTRY RESTRAINTS High Initial Investment The Southeast Asia industrial motors market faces significant challenges due to the high initial investment required for adopting advanced motor systems and technologies. The cost of upgrading to energy-efficient motors and modernizing production facilities can be a financial burden, particularly for smaller companies with limited capital. For instance, in Indonesia, the expansion of the USD 4 billion cement market requires the installation of advanced motors for grinding and material handling, but the capital expenditure involved can delay adoption. In the Philippines, the construction sector's USD 7 billion infrastructure push demands motors for cranes, elevators, and HVAC systems, but the high cost of energy-efficient motors presents a challenge for developers working with tight budgets. Additionally, the semiconductor market in Malaysia, valued at USD 20 billion, requires high-precision motors for assembly lines, but the investment in upgrading older machinery to meet energy standards is a costly hurdle. These high upfront costs hinder the pace at which industries in Southeast Asia can transition to more energy-efficient and technologically advanced motor solutions, limiting Southeast Asia industrial motors market expansion. KEY TAKEAWAYS Key Attributes: Key Company Profiles Other Prominent Company Profiles For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. View source version on CONTACT: Laura Wood, Senior Press Manager [email protected] E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 KEYWORD: ASIA PACIFIC INDUSTRY KEYWORD: OTHER MANUFACTURING MANUFACTURING SOURCE: Research and Markets Copyright Business Wire 2025. PUB: 05/14/2025 08:38 AM/DISC: 05/14/2025 08:37 AM
