Jakarta, INTI - LiuGong has officially commenced construction of the Indonesia Green Smart Industrial Park at the Karawang Artha Industrial Hill (KAIH) in West Java, marking a significant milestone in the company's long-term investment strategy in Indonesia and Southeast Asia.
The groundbreaking ceremony was attended by LiuGong executives, including Zheng Jin, Chairman of Guangxi LiuGong Group Co., Ltd. and Guangxi LiuGong Machinery Co., Ltd.; Luo Guobing, Vice Chairman and President of Guangxi LiuGong Machinery Co., Ltd.; Yuan Shiguo, Xiao Xiaolei, Deng Tao, Levi Lin, Li Yuedong, and Zhao Lei. The event was also attended by representatives from Indonesia's central and regional governments, reflecting strong support for the strategic investment.
Among the distinguished guests were Djauhari Oratmangun, Indonesian Ambassador to China and Mongolia; West Java Governor Dedi Mulyadi; Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE) at the Ministry of Industry; Edy Junaedi, Deputy for Investment Implementation Control at the Ministry of Investment and Downstream Industries; Karawang Regent Aep Syaepuloh; KADIN Indonesia Chairman Anindya Novyan Bakrie; and Hang Yajuan from the China Chamber of Commerce in Indonesia.
The presence of government officials and industry leaders underscored Indonesia's commitment to attracting strategic investments that strengthen the competitiveness of the national manufacturing sector.
Indonesia's First Electric Heavy Equipment Manufacturing Facility
The industrial park is scheduled to begin operations in the first half of 2027 and will become Indonesia's first manufacturing facility dedicated to electric heavy equipment. The plant is expected to strengthen Indonesia's position as LiuGong's production hub for the Asia-Pacific region while gradually supplying products to North American and European markets.
The project is also expected to increase local component utilization, strengthen domestic supply chain collaboration, and develop skilled industrial talent, supporting Indonesia's downstream industrialisation strategy and the growth of its heavy equipment ecosystem.
Zheng Jin stated that the Indonesia Green Smart Industrial Park demonstrates LiuGong's long-term commitment to Indonesia.
"The Indonesia Green Smart Industrial Park reflects LiuGong's long-term commitment to the Indonesian market. We will continue strengthening partnerships in Indonesia and ASEAN, promote innovation through open collaboration, and work with industry partners to support sustainable industrial development and the region's green transformation," he said.
Smart Manufacturing and Local Talent Development
The project will be developed in three phases. During the first phase, LiuGong will establish production lines for electric excavators and electric wheel loaders, with an annual production capacity of 5,000 units.
The facility will incorporate advanced smart manufacturing technologies, including Automated Guided Vehicles (AGV), Rail Guided Vehicles (RGV), and a Manufacturing Execution System (MES) to digitalize production processes and improve operational efficiency.
Luo Guobing explained that the industrial park is designed to be more than a manufacturing facility. It will serve as an integrated green industrial platform combining manufacturing, research and development, talent cultivation, and industrial collaboration.
As part of this initiative, LiuGong will establish the Indonesia Product Application Research & Development Center and collaborate with Universitas Gadjah Mada (UGM) to facilitate technology transfer and develop local engineering talent.
The company is also strengthening its localisation strategy through workforce development. Since joining the China–Indonesia School Cooperation Programme in 2023, LiuGong has trained more than 900 Indonesian students. Currently, 30 students from the latest intake are undergoing professional training at LiuGong's headquarters in China before continuing practical training at the company's manufacturing facilities in Indonesia.
The Indonesia Green Smart Industrial Park represents a key milestone in LiuGong's global manufacturing strategy. Looking ahead, the company plans to deepen localisation efforts, enhance global manufacturing capabilities, and strengthen the value chain for electric heavy equipment.
The project also supports the development of an integrated electric vehicle ecosystem within the Karawang Artha Industrial Hill (KAIH) industrial estate. Through PT LiuGong Machinery Manufacturing Indonesia, the initiative is expected to reinforce KAIH's role as a strategic industrial hub for electric vehicle supply chains while encouraging further investment and accelerating the growth of Indonesia's green manufacturing industry.
Conclusion
The Indonesia Green Smart Industrial Park marks a significant step in advancing sustainable manufacturing and electric heavy equipment production in Indonesia. By combining smart manufacturing technologies, local talent development, and strategic partnerships, LiuGong is helping strengthen Indonesia's industrial competitiveness while supporting the country's transition toward a greener and more innovative manufacturing ecosystem.
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