Home News Industry Minister Inaugurates Fiber Optic Factory US$44M in Indonesia

Industry Minister Inaugurates Fiber Optic Factory US$44M in Indonesia

Minister of Industry Airlangga Hartarto listened to an explanation from the President Director of PT ZTT Cable Indonesia Ye Zhifeng in Karawang on Tuesday (25/09) - Photo by Ministry of Industry

JAKARTA (TheInsiderStories) – Minister of Industry of Republic Indonesia Airlangga Hartarto inaugurated fiber optic cable factory PT ZTT Cable Indonesia, a unit of Chinese’s Jiangsu Zhongtian Technology in Surya Cipta Industrial Area, Karawang, West Java. The factory is expecting to support the development of telecommunications and digital infrastructure in the country.

He said, this step become a priority program for readiness to enter the fourth generation industrial revolution era according to the map the way Making Indonesia 4.0.

“In today’s digital era, communication systems require efficiency in sending information from resource person to the recipient.This effort also very relevant to support the national economy at this time, by increasing ability domestic industry and able to substitute imports,” said the minister in a written statement on Tuesday (25/09).

Jiangsu which was established in 1978. Besides expanding in Indonesia, the chinese company has also establish factories in India, Brazil, Uzbekistan and Morocco. While ZTT Cable Indonesia began construction in February 2017 with an area of ​​36,300 square-meters and a total investment value of US$44.5 million.

The factory is able to absorb 500 workers. Furthermore, this plant has a production capacity for fiber optic cables as much as 1 million km per year, optical fiber as much as 3 million meters per year and ground wire as much as 2 million meters per year.

With the construction of this new plant, Hartarto is estimated that it can reduce the import of fiber optic cables amounting to 8-10 percent of the need per year so that it can save foreign exchange up to $500 million. At present, the need for fiber optic cables in Indonesia reaches 9 million kilometers per year.

The company also produces electrical network equipment and accessories. For example, electrical conductors as many as 20 thousand tons per year and cable fittings as many as 150 thousand sets per year. The company is primarily intended for national and Southeast Asian markets.

Optimized Local Content Use

The minister conveyed, it would be more incentive to push program for Increasing Use of Domestic Content in each project, especially on procurement of goods and services by the government. This is in line with the implementation of the President Decree Number 24 Year 2018 concerning National Team for Increasing Use of Domestic Production.

“Fiber optic cable is one of seven types of products that have the potential to be developed
through the policy of applying the use of domestic content,” said Hartarto.

The other six products, namely cellular phones, solar panels, digital television, internet of things (IoT), lights LED, and smart card. He assessed that the use of locally-made optical fiber cables has a big chance along with development of domestic telecommunications infrastructure. For example, through the Ministry of Communication and Informatics who have launched the Palapa Ring project.

The project will reach a total of 440 cities or counties throughout Indonesia in total
the length of the sea cable reaches 35,280 kilometers, while the cable in the mainland is 21,807 kilometers.

US$1: Rp14,500

Email: linda.silaen@theinsiderstories.com