Danish pump and water technology manufacturer, Grundfos, inaugurated on Thursday, November 14, 2024, its US$2 million submersible pump factory in Jakarta, equipped with large-scale assembly and testing line, allowing for increased local content, accelerated production, and distribution.
Previously, the submersible Grundfos water pumps wereassembled by PT Tehnik Optima Pompa located in Semarang, Central Java. Meanwhile, the newly inaugurated factory will be the center of Grundfos submersible pump production for Southeast Asian region, supporting the needs of Indonesia and 10neighboring countries.
“This assembly plant has the same level of quality checks and technical standard testing capacity that we have at our headquarters in Denmark or at other major global production plants that we have,” Callum Peck, Country President Director of Grundfos, told Indonesia Business Post.
“I think this is very exciting and I know the local team is very proud that we can actually say that we produce local pumps with global quality through the facilities that we have today,” he said.
Callum cited that access to water is a global need and also an urgent need in Indonesia, considering that due to climate change the weather has become difficult to predict, and often causes disasters such as drought and flooding.
He said further that the company’s investment in Indonesia is not just about business, but also reflects the company’s values.
“Grundfos is a company that is mostly owned by a foundation and the foundation reinvests most of Grundfos’ income for the future of the business and also to contribute to the communities where we live and run our business,” Callum said.
“By producing pumps locally, we can increase water availability. The pumps are made to international drinking water standards, with less electricity consumption that make them the most efficient pumps in the world,” he added.
Danish Ambassador to Indonesia, Sten Frimodt Nielsen, said that Grundfos’ investment was made amidst the increasing need for water in Indonesia caused by population growth, economic development, and urbanization.
“I appreciate Grundfos’ contribution in Indonesia which has helped create jobs and overcome water-related challenges in Indonesia,” Ambassador Nielsen said, while citing that Grundfos was established in the same year as Indonesia’s independence.
Local content
Grundfos also received a certificate of Local Content (TKDN) with an achievement of 29 percent, which was submitted by Antonius Fernando, Head of the Machinery Industry and Agricultural Machinery at the Ministry of Industry.
Antonius said that with the factory as a hub, the government together with stakeholders, suppliers, distributors and manufacturers, contractors and service users, the principles of effective and efficient supply chain management can be set as a guideline for all parties in preparing business plans and investment programs in the future.
“Investment must be the right boost, at a right place and a right time, with right quality and quantity. We hope that Grundfos can build a production plant so that the operating factory can increase the TKDN value to 40 percent,” Antonius said.
With the establishment of the new factory, it is hoped that Grundfos can increase production capacity, product delivery time which previously took months is now reduced to just a few days. This move increases the speed of Grundfos’ supply chain for the B2B and B2G segments, including for Regional Water Companies (PDAM), as well as the industrial and commercial sectors.
