Chinese heavy equipment manufacturer LiuGong Machinery has reaffirmed its long-term commitment to Indonesia through a major investment aimed at building one of the nation’s largest and most advanced heavy equipment manufacturing facilities.

LiuGong Machinery Co., Ltd. is a leading Chinese construction equipment manufacturer headquartered in Liuzhou, Guangxi, China. Founded in 1958, LiuGong is recognized as one of the pioneers of China’s modern construction machinery industry.

The company, supported by its three Indonesian subsidiaries − PT LiuGong Machinery Indonesia (LMI), PT LiuGong Machinery Manufacturing Indonesia (LMMI), and PT LiuGong Finance Indonesia − signed a Memorandum of Understanding (MoU) to establish a new manufacturing plant in Artha Industrial Hill Industrial Estate, West Karawang.

The signing ceremony took place during the Rolling Exhibition and Business Forum at the Indonesia Pavilion during the World Expo Osaka 2025 on October 6–7. The event was witnessed by Deputy Minister of Industry Faisol Riza and Director of the Indonesia Pavilion Mada Dahana, and organized by the Ministry of Industry with support from PT Sarinah and the Artha Graha Peduli Foundation.

Indonesia’s participation in the World Expo, held every five years, is seen as a key opportunity to enhance its global image and strengthen partnerships in investment, trade, tourism, and culture.

According to LiuGong, this investment represents a new chapter in the growth of Indonesia’s heavy equipment industry, aligning with the government’s vision for technological independence, domestic competitiveness, and sustainable industrial transformation under the Golden Indonesia 2045 roadmap.

With a total investment value of US$317 million, the planned facility in Artha Industrial Hill will adopt a “Downstream+” approach − integrating manufacturing with sustainability, innovation, and local supply chain development.

Artha Industrial Hill already hosts major investors such as CATL, a global electric vehicle (EV) battery manufacturer. LiuGong’s entry into the area, producing battery-powered heavy machinery, will further advance Indonesia’s Downstream+ industrial policy, which aims to generate broader multiplier effects through integrated downstream industries.

One of LiuGong’s first products from the new plant will be Indonesia’s first domestically produced electric heavy vehicle, underscoring its support for the government’s natural resource downstreaming initiative.

The new factory will be supported by Artha Industrial Hill’s 1ADAPT program, which provides streamlined licensing, investment facilitation, and research support in collaboration with central and regional governments as well as local communities.

By 2030, the facility is expected to reach an annual production capacity of 5,000 units, manufacturing electric excavators, electric wheel loaders, and other low-emission machinery. These products will cater to both the domestic market and export destinations across Southeast Asia, Australia, and North America.

LiuGong’s investment also aims to expand its global market share in eco-friendly heavy equipment, with projected foreign exchange earnings of up to US$40 million annually.

The plant will incorporate Industry 4.0 technologies, including robotics, automated guided vehicles (AGV), a digital manufacturing execution system (MES), and a research and development (R&D) center dedicated to electric construction vehicles.

LiuGong further plans to boost local content (TKDN) by partnering with Indonesian suppliers and securing official TKDN certification within its first five years of operation, thereby strengthening the domestic heavy equipment supply chain.

As part of its technology transfer program, LiuGong will train and empower up to 500 local technicians annually, in collaboration with national polytechnics and universities such as Gadjah Mada University (UGM). These programs will include vocational training, scholarships, and joint research on EV battery technology.

Together with Artha Industrial Hill, LiuGong’s investment is expected to position Indonesia as a regional hub for heavy equipment manufacturing and innovation, advancing the nation’s sustainable industrial transformation.