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Manufacturing Companies in Indonesia – Indoservice

Diposting pada 8 Juni 2024 oleh admin / Dilihat: 1 kali

Manufacturing Companies in Indonesia – In Indonesia there are several types of companies, one of which is manufacturing companies. From an economic perspective, manufacturing companies in Indonesia absorb a lot of labor so they can improve people’s welfare. So, what exactly is meant by a manufacturing company? What are the characteristics and examples of manufacturing companies?

To understand it better, see the complete review of the following manufacturing company!

What is a Manufacturing Company?

Reporting from the Corporate Finance Institute, a manufacturing company is a business entity or company that produces finished goods from raw materials using tools, equipment, production machines, etc. on a large production scale.

The production results are then sold to consumers through a distribution network from wholesale to retail level, so that they reach consumers. Because it is carried out on a large production scale, manufacturing companies certainly have a large number of workers or workers.

Therefore, in many countries, including Indonesia, the existence of manufacturing companies is very important because it can help create very significant job opportunities. All processes and stages are also carried out referring to the Standard Operating Procedures (SOP) of each work unit.

Characteristics of Manufacturing Companies

Manufacturing companies are different from other types of companies. This can be seen from the characteristics or characteristics of the companies which apparently have striking differences. The following are the characteristics of a manufacturing company.

Characteristics of Manufacturing Companies

Revenue Comes from Sales

Manufacturing companies are companies that produce, produce and sell products in the form of goods. The goods in question can be semi-finished goods and finished goods such as household equipment, to various types of food and drinks. Because they sell goods, a manufacturing company’s main income is obtained from the sale of the goods it produces.

Usually one manufacturing company can also produce more than one type of finished goods or semi-finished goods. The more produced, the more income comes in.

Physical Inventory

There are three types of inventory in manufacturing companies, namely raw materials, semi-finished products, and finished products. This characteristic is what differentiates manufacturing companies from trading companies.

Because trading companies are only tasked with marketing products and do not function as providers of product manufacturing materials. If we look at these characteristics, of course a company can be called a manufacturing company if it contains a physical inventory of materials for making products and the product itself.

Production Costs and Activities

According to the definition, the main operational activity of a manufacturing company is carrying out production activities, namely processing raw materials or raw goods into semi-finished goods or finished goods. Without these activities, manufacturing companies cannot run.

The entire process of making raw materials into semi-finished products or finished products certainly requires costs, such as the cost of purchasing material processing machines, etc. These costs are called production costs.

Manufacturing Company Business Process

Just like other types of companies, manufacturing companies also involve several business processes. The following are the business processes that exist in manufacturing companies and their explanations:

Manufacturing Business Process

1. Procurement Process

The procurement process is a manufacturing company business process related to product procurement. Where this process is needed to help business continuity.

2. Inventory Out

The second business process is the in-out inventory process. Where in this business process manufacturing companies carry out activities in the form of processing raw materials into semi-finished products or finished products.

3. Production Process

The production process is a process related to the sale or marketing of a company’s products. Of course, the aim of this production process is to make a profit from the products made.

4. General Administration

The next business process in manufacturing companies is general administration. This includes elements of policy, decision making, recording, control, punishment, etc.

5. Accounting and Finance

The last manufacturing company business process is accounting and Finance. This business process is carried out solely to maintain the company’s financial health. However, the accounting process in manufacturing companies is different from other companies in general. Because, in the manufacturing business there is management of raw materials, calculation of the cost of production, and factory overhead costs (BOP).

Scope and Examples of Manufacturing Companies

What is meant by the scope of a manufacturing company is what business fields are included in the manufacturing sector. The manufacturing industry itself is divided into several types, namely basic and chemical industries, various industries, and various consumer goods.

Indonesian Factory Factory

For more details regarding the scope of manufacturing companies, let’s look at the following explanation and examples!

Basic Industry and Chemistry

Companies classified as basic and chemical industries are companies engaged in the production of cement, ceramics, porcelain, clay, chemicals, animal feed, wood and its processing, paper, and so on.

Some examples of manufacturing companies in Indonesia which are included in the basic and chemical industries are:

  • Holcim Indonesia Tbk (SMCB)
  • Semen Baturaja Persero Tbk (SMBR)
  • Betonjaya Manunggal Tbk (BTON)
  • Barito Pasifik Tbk (BRPT)
  • Tjiwi Kimia Tbk Paper Factory (TKIM)

Various Industries

Manufacturing companies belonging to this type are companies operating in the fields of machinery and heavy equipment, automotive and components, textiles and garments, footwear, cables and electronics.

Some examples of manufacturing companies in Indonesia that fall into various industries are:

  • Astra International Tbk (ASII)
  • Astra Otopart Tbk (AUTOMATIC)
  • Goodyear Indonesia Tbk (GDYR)
  • Asia Pacific Fibers Tbk (POLI)
  • Sumi Indo Kabel Tbk (IKBI)

Consumer Goods Industry

Included in the consumer goods industry are companies engaged in the production of food and beverages, cigarettes, medicines, cosmetics and household appliances. Some examples of manufacturing companies in Indonesia that are included in the consumer goods industry are:

  • Indofood CBP Sukses Makmur Tbk (ICP)
  • Gudang Garam Tbk (GGRM)
  • Kimia Farma Tbk (KAEF)
  • Kalbe Farma Tbk (KLBF)
  • Mustika Ratu Tbk (MRAT)
  • Unilever Indonesia Tbk (UNVR)
  • Kedawung Setia Industri Tbk (KDSI)

Apart from the three types of scope above, there are still several other types included in manufacturing companies, such as shipbuilding, aircraft, machinery, etc. However, looking at the examples above gives an idea of ​​how much the lives of Indonesian people currently depend on these companies.

Establishing a Manufacturing Company

Setting up and running a manufacturing business certainly has risks because you are required to understand the target market on a high scale. This is because the activities of this manufacturing company itself are focused on producing large quantities.

Manufacturing Regulatory Company

There are several keys or tips for success that must be followed if you want to be involved in this manufacturing company business, including:

1. Good Financial Management

Business finance is a very important factor in influencing the success of a business. Companies must think about how to manage capital, income and production costs in order to generate maximum profits.

2. Productivity

A small product stock will make the production costs or capital required even greater. That is why before planning to set up a manufacturing business, you must think carefully about the market strategy that you must pursue. The goal is to maximize the profits obtained.

3. Best Design

A company operating in the manufacturing sector must compete with competitors, so the best design and absolute excellence are needed so that the company can win the competition.

4. Quality Control

Apart from producing the best designs, of course another thing that is no less important is product quality. If a business’s products are not made of quality, then the company will arguably not be able to survive.

Moreover, many companies are able to create products at low prices but are still able to maintain the quality of their goods, as has been developed by many companies in China.

However, apart from the explanation above, you also need to pay attention to the legality of setting up a manufacturing company. Establishing a company and carrying out business activities in Indonesia, of course, must comply with applicable regulations or company legal documents. Apart from being a form of legal compliance, legality can also be a means of running business activities smoothly.

Indonesian Manufacturing License

Some of the legal documents required by manufacturing companies include a legal entity (PT), deed of company establishment, NPWP, and risk-based NIB.

If you experience difficulties or are unfamiliar with the process of establishing a manufacturing company in Indonesia, the procedures and legal basis that apply in Indonesia.

We Indo Servicesa secretarial and licensing services consulting company that can help you established a manufacturing company in Indonesia, trusted and experienced and committed to providing the best and fastest service to meet your needs, don’t hesitate to contact us immediately to get service consultations, offers and the best from us. Tel. +62877-1449-8500 and email at: admin@indoservice.co.id

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