Company History

The Company, established in 1982 as a limited liability company, assembles and manufactures a comprehensive range of heavy equipment and related components, mainly for use in construction, forestry, mining and other infrastructure related sectors. In addition, the Company produces steel cast components which allows the Company's operations to encompass the entire process from casting to the manufacture of complete units.

The Company is located in an industrial area in Cakung Cilincing, Northern Jakarta. The production facility of the Company, which is integrated in a single site, covers an area of approximately 18.2 hectares, comprises of 15,876 sqm of assembly plant, 15,390 sqm of fabrication plant, 11,800 sqm of foundry plant 1,10,000 sqm of foundry plant 2 and 3 stories of office building.

The Company's development can be considered in Four Phases as illustrated below

Phases of Development

Phase 1 : Assembly

The Company was initially involved in the assembly of heavy equipment from Komatsu Ltd. in Japan, such as bulldozers, wheel loaders, motor graders and hydraulic excavators in the form of completely-knocked-down components. Most of the components used were imported from Japan and those more basic components manufactured in Indonesia sourced the semi-finished materials from Japan.

Phase 2 : Local Manufacturing

In 1987 following further Government initiatives aimed at stimulating the use of more locally sourced components, the Company embarked on the second phase by setting up its own facilities to manufacture components. Since that time Komatsu Indonesia has successfully increased its local content of components manufactured in Indonesia. By 1998 the Company was exporting its components to Japan for use by Komatsu Ltd.

Phase 3 : Supply of Components

In anticipation of the appreciating Yen, the Company's third phase of development involved the establishment of a foundry plant in 1991. Komatsu Indonesia now manufactures components for use in Komatsu plants around the world as part of the Group's cross-sourcing strategy of sourcing components from both inside and outside the Komatsu Group. In 1992 further steps were taken to increase the local production of components by the establishment of a frame fabrication plant.

Phase 4 : International Manufacturing Base

The fourth and current phase of the Company's development involves the expansion plans to accommodate increased export sales. The Company has exported components since 1988 and 1995 marked the first export of a complete unit of heavy equipment from Komatsu Indonesia in line with the Group's multi-sourcing strategy of sourcing complete units from within the Komatsu Group. In little more than a decade, the Company has undergone a transformation from the assembly of heavy equipment to an export-oriented manufacturer of heavy equipment.