Mitsubishi Electric Building Solutions to Supply Elevators and Escalators for New Capital Relocation Project in Indonesia

This order for elevators and escalators for key government facilities such as the Presidential Palace and the Executive Office of the President, which are under construction in Nusantara, the new city currently being developed as the future capital of Indonesia, is the result of MJEE’s solid business performance in the Indonesian elevator and escalator market and the high quality of its products and services.

Product Features

Overview of the Indonesia Capital Relocation Project

The Indonesian government is planning to move the national capital from Jakarta to Nusantara in the eastern part of Kalimantan Island in an effort to solve a number of long-standing issues that affect the current capital, Jakarta, including a high population density due to the concentration of political and economic functions, rapid land subsidence, and frequent flooding during the rainy season, as well as to address the issue of regional disparities between Java and the rest of Indonesia.

The government has set a target date of 2045 for the complete relocation to the new capital. In the first phase of the relocation, several government functions are scheduled be relocated within 2024.

MEBS's Elevator and Escalator Business in Indonesia

Indonesia is the third largest market for new elevators and escalators*1 among the ASEAN countries, after Vietnam and Thailand. Indonesia boasts the largest population and GDP in ASEAN, and is expected to continue to experience strong growth in demand along with sustained economic growth.

MJEE began selling elevators and escalators in Indonesia in 1996, and has since established itself as a market leader in the country. MJEE now has its own production base in Karawang, West Java, and has been responding to local needs by combining major parts imported from Thailand's AMEC, our core base in Asia, with locally produced parts to achieve reduced costs and shorter lead times for high quality products.

Moreover, in accordance with Indonesia's domestic product usage (P3DN) program*2, in September 2021, MJEE received a certificate indicating that a domestic component level (TKDN) of 40% or more had been reached for machine room-less elevators with a rated load capacity of 1,275~1,600 kg and speed of 105 m or less. This certification allows the company to actively participate in purchasing and procurement projects conducted by the Indonesian Government as well as by state-owned and other public entities, thereby accelerating the expansion of its elevator and escalator business in Indonesia. MEBS will continue to provide safe and reliable products and services to the Indonesian market through MJEE, while aiming to increase the domestic component level of its other models to 40% or more.

*1 Based on demand for 2022, according to MEBS’s own research

*2 A policy aimed at promoting the purchase and use of domestically produced products by the Indonesian government to achieve both growth in the Indonesian manufacturing industry and investor profits. As for government goods/service procurement., domestic products (meaning products with the domestic component level of 40% or more) are given priority. The domestic component level is calculated based on how much domestic production factors and costs such as raw materials, labor, and manufacturing overhead are used.

Overview of MJEE

Customer Inquiries
Corporate Planning Department, Global Business Group
Mitsubishi Electric Building Solutions Corporation
bod.inquiry@rk.MitsubishiElectric.co.jp 

Media Inquiries
Corporate Communication Division
Mitsubishi Electric Building Solutions Corporation
a_meltec-kouhou@meltec.co.jp

Press Release: http://www.acnnewswire.com/docs/files/2024226EN.pdf