Doing business in Indonesia: ABB
Three questions to Michael Hose, Country Managing Director ABB in Indonesia23 Jan 2020
Since when is ABB active in Indonesia and how?
ABB in Indonesia was established in 1988. From one office in Jakarta and Motors & Generators workshop in Tangerang, ABB has grown to a range of offices with various workshops, factories and service centers ensuring a prominent nationwide presence.
In 1990s, ABB opened factories for medium-voltage products and miniature circuit breakers as well as the Surabaya branch office and a Turbocharging workshop in Jakarta. Starting 2008, ABB in Indonesia has been growing further by opening branch offices in Indonesia’s largest cities. For the past five years, ABB has inaugurated three new factories in Indonesia for high and medium-voltage switchgear. In 2016, the ABB global software development center was opened in Bali as a part of Power Grid-Grid Automation business.
What is the importance of Indonesia for ABB?
Indonesia’s rapid transformation from a rural to an urban economy has served as one of the benchmarks for the country’s massive growth potential, while simultaneously underscoring several challenges it needs to confront. Infrastructure development must keep up with demand, while investment in innovative solutions can contribute to sustainable living.
ABB is committed to engage with the Indonesia government, especially with Jakarta provincial government and to support the big cities’ transition to smart cities. We have been working with the government and industries to implement initiatives, mostly focusing on EV development and infrastructure. For example in December 2018, ABB supported one of the first fast charging stations in Indonesia. Moreover, ABB has recently won an order to supply further fast chargers (Terra 54) for PLN’s (State Electricity Company) electric vehicle charging station at the PLN Jakarta head office. The station is located at the heart of the city and provides easy access especially for public transportation (Blue Bird e-taxi) to charge anytime. Finally, ABB Formula E, which takes place in Jakarta, is one of the most exciting developments in sustainable transport today.
What in particular does ABB appreciate about Indonesia as an industrial partner?
Indonesia has a strong commitment to industry 4.0 and “The Making Indonesia 4.0” roadmap is central to this goal. In early 2019, the Indonesia government rolled out the Indonesia Industry 4.0 readiness index (INDI 4.0) to better guide the companies on their industrial transformation. ABB sees the prospects for Indonesia’s economy are truly exciting. Indonesia and its companies can take an important step toward realizing the promises of this global transformation with the right business solutions and fresh perspectives. This is where ABB positions itself to support the government’s longterm plan and clear accountability for implementing them as a backbone to ensure the progress continues although the vision of smart city tends to evolve as we move forward.
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