ASIATODAY.ID, JAKARTA – PT Sanken Indonesia will soon close its factory in Indonesia. This plan was a direct request from its parent company in Japan, Sanken Electric. However, currently PT Sanken Indonesia is still producing with a utility of around 10 percent to supply automotive component needs for its customers in Indonesia until June 2025.
“Based on the decision of the parent company in Japan, in February 2025 it was decided and informed to customers and employees that PT Sanken Indonesia would stop line production in June 2025,” said Setia Diarta, Director General of Metal, Machinery, Transportation Equipment and Electronics Industry, Ministry of Industry of the Republic of Indonesia, in a written statement in Jakarta, Friday, February 21 2025.
Since the announcement to stop its production line, PT Sanken Indonesia has started providing design support for their existing products to other companies so that they can be produced in order to meet the needs of their customers.
“The products produced by PT Sanken Indonesia are switch mode power supplies with a production capacity of 3.95 million pcs per year and transformers with a production capacity of 4.32 million pcs per year. “Their market share is in the automotive and electronics sectors,” he said.
PT Sanken Indonesia has no affiliation with PT Sanken Argadwija which produces household electronic equipment under the Sanken brand.
“So, we are straightening out the information circulating, so that there is no misunderstanding, that PT Sanken Indonesia is not a manufacturer that produces household electronic products under the Sanken brand, they are a manufacturer of power supplies and transformers,” he explained.
PT Sanken Indonesia was founded in 1997 in the MM 2100 industrial area, Bekasi Regency, West Java. The total investment is IDR 49 billion, which is foreign investment. This company employs around 457 people.
“We received reports that the company had negotiated with employees to settle severance pay and other rights as regulated by the Manpower Law,” said Setia.
Apart from that, PT Sanken Indonesia is trying to provide entrepreneurship training to interested workers, and the company is establishing communication with fellow Japanese companies located around the factory location, to be able to absorb Sanken Indonesia’s workforce.
Setia mentioned several reasons why PT Sanken Indonesia would stop its production operations.
First, there was no support for design and technology updates from the parent company in Japan due to the sale of the related division.
“In the 2017 – 2019 period, the division related to power supplies and transformers in the parent company was sold to another group of companies in Japan, but the ownership of PT Sanken Indonesia was not transferred, resulting in no further support for updating product design and technology for PT. “Sanken Indonesia from a parent company in Japan,” he explained.
Second, companies are unable to compete to adapt to new products.
“The company continues to experience losses. “This is also a concern considering that PT Sanken Indonesia products are no longer Sanken Electric’s main business which focuses on developing semiconductor products,” he said.
Setia emphasized that the termination of the PT Sanken Indonesia production line was not due to the business climate in Indonesia, but rather due to management policy in Japan to stop their operations.
“Because this company has actually been losing money since 2019,” he continued.
Meanwhile, PT Sanken Argadwija Marketing Director Esmond H. Tirtajasa emphasized that the news regarding the PT Sanken Indonesia factory in the MM 2100 industrial area which will be closed, is not part of PT Sanken Argadwija.
“The factory that closed was a factory that specialized in producing small parts, and was not part of our factory at all,” he said.
He said, PT Sanken Argadwija is a factory that produces household electronic equipment such as refrigerators, showcases, water dispensers, solar water heaters, washing machines, air conditioners, televisions, rice cookers, fans and other household products.
“Our factory is located in Tangerang, and is different in terms of ownership from the company that is being reported,” he added.
PT Sanken Argadwija even plans to expand its factory to the Cirebon area, West Java. This factory expansion aims to meet growing consumer demand.
“The public does not need to worry because the Sanken service network spread throughout Indonesia is still running normally and will be further improved,” he said. (AT Network)
Follow Us at Google News and WA Channel