Industry Report

Indonesia: Machine Tools Industry

Business opportunities for Swiss companies

In Indonesia, large government and private projects are demanding machines with high precision and heavy-duty, which cannot be fulfilled by domestic producers. This is an excellent opportunity for Swiss made precision machines. Read more about the industry and business opportunities for Swiss companies in our report.

Machinery precision

Growth within the machine and cutting tools market

The growth of the machine and cutting tools market is powered by the individual growth of the mining, power generation, automobile, aerospace & defense industry. As the use of composite materials in the automobile industry increases, diamond-tipped tools will also grow faster vis-a-vis cemented carbide tools. Cement carbide tools are heavily used in the mining and power generation industry and steel and steel alloys are mostly used in the fabrication of various components.

The use of intricate components in Aerospace & Defense industry is expected to promote use of high precision tools. The machine tools market grows at 6.2% from 2014 to 2018. Machine tools import in automotive sector contributed 45% of the total import, while the remaining came from several other sectors such as oil and gas, or transportation.

E-commerce as an attractive distribution channel

Machinery producers are expected to be pushed into e-commerce due to intensifying competition with their peers. E-commerce helps big machinery producer corporations to cost-effectively address the needs of the wide range of smaller buyers. Alternatively, it can help to strengthen the relationships among companies that have strong market power. Indonesia offers a variety of attractive e-commerce platform, more information can be found in the report below.

Market report and business opportunities for Swiss companies

The report provided by the Swiss Business Hub Indonesia gives an overview of the machine tools market in Indonesia and points out business opportunities within the consumer electronics and automotive manufacturing sector.


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