ASIATODAY.ID, KARAWANG — Indonesia is moving closer to becoming a regional manufacturing powerhouse after Chinese heavy equipment giant LiuGong officially began construction of its Indonesia Green Smart Industrial Park in Karawang, West Java, with an investment commitment of approximately US$290 million.
The strategic facility is expected to transform Indonesia into a major heavy equipment manufacturing and export hub, supporting global supply chains while accelerating the country’s industrial transformation, green technology adoption, and downstream development.
The groundbreaking ceremony at Karawang Artha Industrial Hill was attended by senior executives from LiuGong, Indonesian government officials, industry representatives, and business leaders, including Chairman of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) Anindya Novyan Bakrie.
Representing LiuGong were Chairman of Guangxi LiuGong Group Co., Ltd. and Guangxi LiuGong Machinery Co., Ltd. Zheng Jin, Vice Chairman and President of Guangxi LiuGong Machinery Luo Guobing, as well as senior executives from LiuGong Machinery Indonesia.
Indonesian officials attending the event included Ambassador of Indonesia to China and Mongolia Djauhari Oratmangun, Director General of Metal, Machinery, Transportation Equipment and Electronics Industries at the Ministry of Industry Setia Diarta, Deputy for Investment Implementation Control at the Ministry of Investment and Downstreaming Edy Junaedi, and Karawang Regent Aep Syaepuloh.
Indonesia as LiuGong’s Asia Pacific Production Base
Anindya Novyan Bakrie welcomed LiuGong’s decision to make Indonesia a manufacturing base and export centre for global markets.
“On behalf of Kadin Indonesia, we congratulate LiuGong on the start of this integrated heavy equipment manufacturing facility in Karawang. We appreciate LiuGong’s decision to choose Indonesia as a hub for exports to the world,” Anindya said.
The facility will be developed on a 27-hectare industrial area and is designed to strengthen Indonesia’s position as LiuGong’s production base for the Asia Pacific region, with future supply potential to markets in North America and Europe.
The project will be developed in three phases. In its first phase, LiuGong will build production lines for electric excavators and electric wheel loaders, with planned capacity reaching 5,000 units annually.
The facility is targeted to begin operations in the first half of 2027 and will become Indonesia’s first factory dedicated to producing electric heavy equipment.
Smart Factory and Green Manufacturing
The Indonesia Green Smart Industrial Park will adopt advanced manufacturing technologies, including Automated Guided Vehicle (AGV), Rail Guided Vehicle (RGV), and Manufacturing Execution System (MES) to support digitalised production processes and improve operational efficiency.
LiuGong said the facility will not only serve as a manufacturing centre but also as an integrated platform combining production, research and development, talent development, and industrial collaboration.
“The Indonesia Green Smart Industrial Park reflects LiuGong’s long-term commitment to the Indonesian market. We will continue to deepen our partnership with Indonesia and ASEAN, promote innovation through open collaboration, and support sustainable industrial transformation in the region,” Zheng Jin said.
Vice Chairman and President of Guangxi LiuGong Machinery Luo Guobing said the company will establish the Indonesia Product Application Research and Development (R&D) Center and collaborate with Universitas Gadjah Mada to accelerate technology transfer and develop local industrial talent.
Supporting Indonesia’s Industrial Downstream Strategy
Anindya said the investment would deliver broad economic benefits, including strengthening manufacturing capabilities, creating jobs, and supporting infrastructure development.
“Investment is not only about capital, but also about investing in human resources and knowledge that Indonesia needs to compete globally,” he said.
The project will also increase local component utilisation, strengthen domestic supply chains, and develop skilled workers to support Indonesia’s heavy equipment ecosystem.
As part of its localisation strategy, LiuGong has been developing Indonesian talent through the China–Indonesia School Cooperation Program since 2023. More than 900 students have received training, while 30 students from the latest programme are currently undergoing professional training at LiuGong’s headquarters in China.
A New Chapter for Indonesia’s Industrial Future
The establishment of Indonesia Green Smart Industrial Park marks a significant milestone in LiuGong’s global manufacturing strategy and Indonesia’s ambition to become a competitive industrial hub in Asia.
The project also strengthens Karawang Artha Industrial Hill as an emerging centre for electric vehicle and smart manufacturing supply chains, supporting Indonesia’s broader transition toward higher-value industries.
With green technology, smart manufacturing, research collaboration, and export-oriented production, LiuGong’s investment highlights Indonesia’s growing role in the future of global industrial networks. (AT Network)
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