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Page 1: Manufacturing industry vito

Manufacturing Industry

in Indonesia

By: Vito Agnar RizalyGrade 10

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Introduction

Manufacturing industries are the sectors of production that process or reprocess industrial and agricultural raw materials.

Manufacturing industry deals with object that are already the products of labor.

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Development

Development of cable manufacturing industry in Indonesia

The country's cable industry was badly hit by the 1998 crisis.  Until 2004, operation of the   production capacity of the industry was only around 25%- 30% of established production capacity.

The fast growing order for electricity has forced the government to launch an ambitious plan called crash program to build coal / oil fired power plants with a total capacity of 10,000 megawatts to be completed in 2010-2011.

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The revival of the cable market in 2007 and 2008 was reflected by the financial performance of listed cable producers. PT Sumi Kabel reported sales at only Rp.976 billion in 2004. In 2006 it sales up to Rp1,914 billion . Similarly, sales of PT Supreme Cable (SUCACO)  flowed  to Rp2,281 billion  in 2007 from Rp1,483 billion  in 2006.

Increase in the prices of basic materials like copper  contributed to the problem faced by cable industry  lately.  Many cable producers suffered losses on foreign exchange  as they bought  the basic materials in US dollar  the value of which surged facing the rupiah.

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Cable producers and production capacity

After the 1998 crisis , there was almost no addition in the number of cable factories and installed capacity. The member of the association of cable producers (APKABEL), which groups almost all cable factories in the country did not change much. In 1997, there were 35 members of the association  and  2006, the number slightly declined to 34 companies.

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Currently there are  15 major cable makers  in Indonesia. Most of them are old companies like PT Tranka  Kabel  that came on line in 1952.  PT Sumi Indo Kabel Tbk (Perusahaan)  was established  on  23 July 1981, with the name of PT Industri Kawat Indonesia. The name of the company was changed  with PT IKI Indah Kabel Indonesia in 1982. And many more companies.

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Role of Secondary Industry in Indonesia

Indonesian manufacturing industry plays an important role since we are aware that we can’t rely on oil and gas exports.

Export manufacturing industry contributed about 83-85% of non-oil exports and about 64-67% of Indonesia’s total exports during 1994 – 2005.

Manufacturing industry almost maintain economic growth in Indonesia.

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Systems of manufacturing

Craft or Guild system

Putting-out system

English system of manufacturing

American system of manufacturing

Soviet collectivism in manufacturing

Mass production

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Rapid manufacturing

Prefabrication

Packaging and labeling

Ownership

Fabrication

Publication

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Bibliography

1. (2009) (DEVELOPMENT OF CABLE MANUFACTURING INDUSTRY IN INDONESIA) (Thurs, 29th July 2010)

http://teknik.ubaya.ac.id/index.php/en/news/161-industri-manufaktur-di-madura.html

2. (2009) (Engineering to be recognized as the excellent engineering faculty) (Thurs, 29th July 2010)

http://www.datacon.co.id/Cable1-2009.html

3. (2009) (Peran Industri Manufaktur) (Mon, 2nd August 2010)

http://mathedu-unila.blogspot.com/2009/10/peran-industri-manufaktur.html