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Electric equipment maker Sanken to close Cikarang factory in June
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Industry Minister Agus Gumiwang Kartasasmita (center), the Industry Ministry’ metals, machinery, transport equipment and electronics industry director general, Setia Diarta (left), and the ministry’s inspector general Mohammad Rum address the media at the ministry’s offices in Jakarta on Nov. 25, 2024. (JP/Ruth Dea Juwita)
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T Sanken Indonesia, a subsidiary of Japan-based electronic equipment manufacturer Sanken Electric Co. Ltd., plans to close its MM2100 factory in Cikarang, West Java, in June, a government official has said.
The company is not to be confused with Jakarta-based PT Sanken Argadwija, which operates a 12-hectare home appliance production facility in Curug-Banten, West Java.
Setia Diarta, the Industry Ministry’s director general of metal, machinery, transportation equipment and electronics, said the firm, which produces transformers and uninterruptible power supply (UPS) systems, among other products, had seen a declining factory utilization rate over the last couple of years.
“Of the power supply [equipment], 40 percent [of their] production is for export and the rest is for the domestic market,” he told reporters in Jakarta on Wednesday.
“But the domestic demand did not meet their quota. Since 2023, and even before that, their production kept declining. In 2024, their [factory] utilization [rate] was just 14 percent.”
The firm was expected to close the Cikarang processing facility in June, Setia said, referring to a document submitted on the online single submission (OSS) system.
Setia went on to say that the facility was 100 percent funded by foreign direct investment and that the closure was a directive from the parent company.
