Bosch sustains growth trajectory in Indonesia

• Sustainable growth across Bosch business sectors in Indonesia
• Connected and automated solutions to support Industry 4.0 implementation in Indonesia
• Future of mobility with active safety technology and electrified mobility
• Continuous effort to foster, promote and support innovation

Surabaya, Indonesia – Bosch, a leading global supplier of technology and services, ended its 2018 fiscal registering around IDR 1.6 trillion (96 million euros) in consolidated sales in Indonesia – an increase of eight percent compared to the previous year. “In 2018, we managed to sustain our growth trajectory across all business sectors, strengthening our presence in e-commerce platforms and increasing visibility for our connected and automated solutions,” said Andrew Powell, managing director of Bosch in Indonesia. Bosch currently employs more than 200 associates in the country.

Sustainable growth across Bosch business sectors

Bosch’s Mobility Solutions delivered the first electronic control unit (ECU) with “Made in Indonesia” label in 2018, manufactured at its existing powertrain facility in Cikarang, West Java, to its customers. Local demand for ECU is expected to continue in 2019 with the company already securing orders for the next couple of years. The introduction of EV charging stations for hybrid and electric vehicles from Automotive Aftermarket division also contributed to the business sector´s success. Consumer Goods business sectors’ growth was driven mainly by stronger presence on all e-commerce platforms and the completion of high-end apartment project for South Hills Residences, Jakarta. Building Technology launched the ‘Loud & Clear’ products array from Electro Voice and Dynacord as well as introduced Aviotec Fire Detection Camera for various industries. The Industrial Technology business sector is placing a strong focus on factory automation and advanced manufacturing. Last year, Termotechnology division delivered industrial boilers to Indonesia’s biggest skin care and tire factories. Rexroth, a drive and control division of Bosch, introduced wide range of hydraulics components and drive systems for palm oil and mining industries such as CyrtoPac and Hagglunds, and open a new service center in Balikpapan.

Bosch Industry 4.0 Solutions: Shaping smart factory vision into reality

The recent launch of the “Making Indonesia 4.0” roadmap by the Indonesian government propels the demand for connected factory solutions and automated manufacturing processes further. “Bosch is able to support local businesses and manufacturers in Indonesia with cross-domain automation solutions as our capabilities and competencies span multiple industries, from automotive, food and beverages, to printing and packaging,” says Powell. Last year, Bosch participated in INDI 4.0 hosted by Ministry of Industry, showcasing various connected solutions and automated manufacturing processes, such as Connected Industrial Software Solution (CISS), IoT Gateway, ActiveCockpit and Asset Tracing Solution (TRACI). These solutions enable businesses to increase manufacturing’s productivity, safety, and energy efficiency.

Future of mobility with safety technology and electrified mobility

Bosch continues to advocate for road safety through multiple activities. In 2018, Bosch held a Focus Group Discussion (FGD) with Ministry of Transportation, Bappenas and other stakeholders to share the research collaboration’s result between Bosch Accident Research and the University of Indonesia. Bosch also participated in the 10th ASEAN Automobile Safety Forum (AASF) 2018 in collaboration with ASEAN NCAP to demonstrate active safety technology for both four and two-wheelers.

Bosch sees the availability of infrastructure for e-mobility as one of the main drivers for technology adoption in the country. In 2018, Bosch established partnership with Pertamina to deploy multiple electric vehicle (EV) charging stations to their Green Energy stations, as well as delivering charging stations to one of EV manufacturers Indonesia. The move will bring Indonesia closer to its ambitions of electric vehicles constituting 20 percent of its domestic vehicle sales by 2025.

Continuous efforts to foster, promote and support innovation

As an innovation leader, Bosch aims to shape change in its markets, both in technological and a business sense and maintain our strategic focus on connectivity. In February 2018, Bosch opened its new innovation facility in Surabaya, East Java. Located in the heart of the city, the new 885 square-meter office is specifically designed to foster exchanges of technological ideas among professionals, entrepreneurs, creators, academia, students, as well as communities - especially in the field of the Internet of Things (IoT). Bosch also debuted its Internet of Things (IoT) competition in Indonesia titled ‘Bosch IoT Hackathon 2019’. The competition challenged young digital talents to develop IoT solutions using Bosch XDK - Cross Domain Development Kit.

Separately, first trials of AquaEasy, a smart aquaculture solution from Bosch were also conducted in Indonesia. The solution utilizes the power of sensors and algorithms to help farmers protect and increase their yield in a sustainable way. The innovation includes measuring and monitoring multiple water quality parameters as well as pond management features. Equipped with Artificial Intelligence (AI), the system can help farm technicians make important decisions on feeding, stock health and even harvesting.

Another local innovation is Bosch Intelligent Microgrid Controller for Asia (BIMA), a solution that manages and combines power from multiple energy sources such as solar panels, batteries, or generators to achieve a reliable and stable energy supply. With its cloud capabilities, the artificially intelligent powered system continuously analyses usage and supply pattern to avoid blackouts and use the most economic energy source. The system was installed at Nimasi clinic in Timor, Indonesia, which supports healthcare for nine surrounding villages. The clinic has experienced zero blackouts ever since the installation.

Bosch Indonesia outlook: “Indonesia Rising”

In line with the “Indonesia Rising” vision, the company will be basing its activities on four business areas of growth: automotive, industrial, consumer, and digitalization.

Automotive business – Indonesia is a growing production hub for passenger cars. It is currently producing 1.2 million passenger vehicles yearly, projected to increase to 1.6 million by 2025. Bosch also sees real potential for Indonesia with its position as the third largest hub for the 2-wheeler market in the world (after China and India), with a total of 107 million 2-wheeler on the roads and approximately seven million produced in the country every year.

Industrial – Bosch also see significant growth potential for industrial businesses in Indonesia. Our Industry 4.0 technologies will be vital to develop these industries and propel local economic growth exponentially.

Consumers are the third area of growth. With a projected annual GDP growth of five to six percent, the number of middle class consumers is expected to reach 141 million in 2020 - a huge market potential for Bosch consumer goods and connected solutions products.

Last but not least – digitalization. Indonesia is the largest and fastest growing internet economy in Southeast Asia. In a heavily smartphone-driven environment with over 140 million internet users, 75 percent of online purchases are made via mobile devices. Purchase decisions are significantly influenced by social media, leading value-driven users to become more and more brand conscious and drive expectation in regards to delivery of services and convenience.

“Despite the heightened global uncertainty, Indonesia’s economic outlook continues to be positive and it is entering its golden age. We are convinced Indonesia will continue to play a major role in ASEAN and we are looking forward to supporting and participating in this rapid development,” Powell adds.