LiuGong Indonesia to Build Heavy Equipment Factory in Karawang
Jakarta, October 10, 2025 – LiuGong Indonesia reaffirmed its long-term investment commitment by establishing a heavy equipment manufacturing facility. The plant will be located in the Artha Industrial Hill Industrial Estate, West Karawang.
Through PT LiuGong Machinery Manufacturing Indonesia, LiuGong Indonesia signed a memorandum of understanding (MoU) for the planned investment in the industrial area on Monday, October 6, 2025, as part of the Rolling Exhibition and Business Forum at the Indonesia Pavilion during World Expo Osaka 2025. The signing ceremony was witnessed by Vice Minister of Industry Faisol Riza and Director of the Indonesia Pavilion Mada Dahana.
The project is supported by Artha Industrial Hill through the 1ADAPT program, which provides facilitation in licensing, market research, and investment services. With strong backing from the central and regional governments, as well as various stakeholders, LiuGong is confident that the new plant will strengthen Indonesia’s position as a global center for heavy equipment manufacturing and innovation.
Levi Lin, President Director of LiuGong Indonesia, targets the manufacturing facility to begin operations in 2026. The plant will become one of the largest heavy equipment factories in Indonesia, with an annual production capacity of up to 5,000 units by 2030.
With a total investment value of US$ 317 million, LiuGong’s manufacturing facility will feature advanced technologies such as Automated Guided Vehicles (AGV), a digital Manufacturing Execution System (MES), and a research and development (R&D) center dedicated to electric construction vehicles.
LiuGong is also committed to increasing the Domestic Component Level (TKDN) by partnering with local suppliers. The company aims to obtain formal TKDN certification within the first five years of operation.
The production from LiuGong’s Indonesian plant will not only serve the domestic market but will also be gradually exported to Southeast Asia, Australia, and North America. The potential foreign exchange contribution from these business activities is estimated at US$ 40 million per year.
Levi stated that this investment represents LiuGong’s contribution to strengthening Indonesia’s heavy equipment industry ecosystem. It also underscores LiuGong’s commitment to supporting sustainable development and realizing Indonesia’s Golden Vision 2045.
“This investment is not just about building a factory—it’s about building the future of Indonesia’s heavy equipment industry. We aim to become the government’s strategic partner in advancing technological independence and enhancing global competitiveness,” said Levi Lin.
The new Indonesian plant will expand LiuGong’s global production base. The Chinese heavy equipment manufacturer already operates several production facilities in China, India, and Argentina.
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About PT LiuGong Machinery Indonesia
PT LiuGong Machinery Indonesia is part of LiuGong Machinery Corporation, a global heavy equipment manufacturer that has led China’s construction machinery industry for over 65 years. The company established its Indonesian office in 2019 as part of its commitment to providing modern, efficient, and reliable heavy equipment solutions to customers. The local presence also enables faster spare parts delivery, significantly reducing machine downtime for Indonesian customers.
LiuGong Indonesia has also developed a training center to support technical and operational skills development for dealers and customers in Indonesia. Another key service is LiuGong Care, a customer information platform offering solutions for major component repairs, routine maintenance scheduling, consultation, and requests for spare parts and machinery.