6 Key Challenges in Manufacturing Industry in Indonesia

The manufacturing industry is a business group that is engaged in processing materials into semi-finished goods or finished goods so that the price of an item increases. Inside there are various companies that produce different items.

In Indonesia, the development of this industry continues to increase, giving a significant impact. However, this does not mean that the manufacturing industry has no obstacles. There are various challenges in the manufacturing industry faced in Indonesia. What is that? Here is the review!

1. Prediction of Product Demand

One of the main problems that are often faced by today's manufacturing industry is the difficulty of predicting customer demand. This could be due to the absence of a sophisticated reporting system with tools to predict the goods they sell for some time to come. As a result, the product produced is not in accordance with the request.

2. The Control of Inventory

It is not only that controlling the existing inventory system is a challenge for companies engaged in manufacturing in Indonesia. Although there are currently various technologies that make the supply process simpler, some small industries have not been able to run this technology because of the high costs that must be incurred.

3. Management of Sales Prospects

In addition to predictions of product demand, management and sales prospects are a challenge for the manufacturing industry. Because the company often makes prospects in the same way.

Though each prospect has a different character, needs, and preferences. Companies also often have difficulty in identifying prospects that have the potential to generate more value so that they only focus on things that have no opportunity.

4. Increased Return on Investment (ROI)

It is undieniable that ROI or return on investment is the main focus of all companies. Every company has its own goals in increasing ROI where the steps often are taken by increasing production or increasing the value of a product.

Unfortunately, this step is not effective especially with economic conditions that are often uncertain. As a result, the existing products did not sell because of the ability of consumers to buy products also declined.

5. The Increasing of Qualified Workers

It cannot be denied if the use of machinery in the production system replaces the role of employees in the company but it does not mean that human power has been replaced by a machine. However, the ability of human resources is still needed to analyze and solve problems that exist in the production chain.

The problem that occurs is the lack of a qualified workforce so that not a few companies require additional employees. Therefore, companies need to do creative ways to recruit qualified employees, for example using online media to announce job vacancies.

6. Development of In-Factory Efficiency

Finally, another problem often faced by companies in the development of efficiency within the factory. It is because the budget must be spent to improve the efficiency of performance in the factory is high.

One of the most efficient manufacturing factory which has proper locations in Indonesia is Karawang New Industry City (KNIC). This area is located in West Java carries many advantages including world-class integrated technology and systems so that the presence of world-class infrastructure is in this place.

Various developments in the latest technology trends continue to be carried out by companies in KNIC to increase efficiency in order to meet consumer demand. The strategic location near the toll road, Jabodetabek LRT, train station, airport, and port makes it easy to deliver goods everywhere.

Besides aiming to support the performance of a manufacturing company, KNIC is also present to support the acceleration of regional economic growth and to present a multiplier effect that is useful for socio-economic development in Karawang and areas in the West Java region.


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