The manufacturing sector plays a major role in the Indonesian economy. In addition, until now it has seen the largest foreign direct investment. As a result, huge industrial parks have been built across the nation, with factories operating 24/7. The production heartland is Java, the nations most populated island. Overall, the sector currently accounts for about 20% of GDP.
We perform Executive Search for both MNC and Local producers.
There are 2 main types of Manufacturer:
Industrial: These companies produce raw materials or products that are then used to make final goods. For example, Chemicals, Fragrances, Plastics, Cement, Building Materials, Glass, Ceramics, Coal, Steel, Iron, Gold, Rubber, Wood, Pulp, Oil and Gas.
Final Product: These businesses make finished products that are then sold to consumers / companies / the government. For instance, Automotives / Cars, Food & Beverages, Healthcare items, Furniture, Electronics, Mobile Phones, FMCG products, Paper, Home Appliances and Textiles.
The Indonesian Manufacturing Sector
Above all, the sector is highly diverse, reflecting the nations huge array of natural resources. In addition, as an emerging market, producers benefit from the country’s relatively low cost of labor. On top of this, with the worlds 4th largest population Indonesia offers a huge domestic market. As a result, foreign producers have been flocking to the country for decades, setting up factories and sales teams.
From 2011 to 2016 foreign companies invested US$76 billion into the Indonesian manufacturing sector.
Overall, manufacturing employs about 15 percent of the total workforce – 17 million people. It is the 2nd largest employer after agriculture. Globally the local sector is ranked 9th in terms of its size.
The government aims for Indonesia to be a top 10 global economy by 2030. And manufacturing is seen as key to this. However, there are 2 large issues to overcome. First, final product producers still need to import a lot of specialised raw materials and component parts. Second, a lot of local raw materials are exported in natural form, before being processed into higher value goods.
In short, the government wishes to improve in both these areas so that more wealth stays in the nation.
Java – the Factory Heartland
The majority of factories are located in Java. The island is home to 60 percent of the country’s population and accounts for 58 percent of GDP. Consequently, logistics and infrastructure are also more developed. There is a strong road network and high quality seaports. As a result, more than half the country’s 100+ industrial estates can be found in Java.
Going deeper, 60 percent of production takes place in West Java. Foreign Direct Investment into this region was US$2.2 billion in 2019. The area is also home to agriculture – farms, plantations and crop production. Likewise, due to fertile volcanic soil it produces 70 percent of national tea and about 20 percent of rice.
Central Java is also popular for manufacturers. The sector makes up about 30 percent of the regions GDP. It is the textile capital for the country; seeing about 56 percent of all textile investment. Central Java has strong transport links with four international airports, 11 seaports and 3,000+ km of roads.
East Java is home to the country’s largest ship building facility and cement factory. Lastly, Banten province, which borders the DKI Jakarta capital region, is rich in minerals. For example gold, coal, phosphate, and opals. It is the preferred choice for metal producers, chemicals, automotives and F&B.
Executive Search for Manufacturers
Over the years ProCapita has completed 150+ Manufacturing Related Headhunter / Executive Search assignments.
For Industrial Producers we have worked across:
- Glass / Plastics / Ceramics
- Building Materials / Cement
- Chemicals / Agrochemicals / Flavors / Fragrances
- Steel / Iron / Metals
- Mining – Coal / Gold / Nickel
- Oil / Gas
- Rubber / Wood / Pulp
And for Final Product Producers we have worked across:
- FMCG – Food & Beverage (F&B) / Beauty / Personal Care / Hygiene
- Automotives – Cars / Trucks / Tyres
- Heavy Equipment / Machinery
- Electronics / Home Appliances
- Pharmaceuticals / Medical Devices
- Home Furnishings / Paint
In our experience manufacturing clients have very specific hiring needs. For instance, they usually require professionals that have particular product knowledge or market experience.
Likewise, if hiring for commercial roles, clients often need people with specific sales channel expertise:
- Business to Business (B2B)
- or Business to Consumer (B2C) – General Trade / Modern Trade / E-Commerce / HORECA
- or Business to Government (B2G)
We have performed Executive Search for all key Manufacturing job functions:
- C-Level / Leadership
- Sales, Marketing & Digital
- Operations, Quality Control, Production, Procurement, Supply Chain, Logistics, Product Development & R&D
- Finance, HR & Legal
Examples of Manufacturing Sector Hires Completed:
- Country Head / President Director
- GM Operations
- Chief Financial Officer (CFO)
- VP Sales & Marketing
- National Sales Manager
- Director of Human Resources
- Chief Operations Officer (COO)
- Director of Plant / Production
- Head of Supply Chain
- Chief of Procurement
- VP Logistics & Distribution
- Sales Manager – Modern Trade / General Trade / HORECA
- Regional Head of Talent
- Senior Manager Marketing
- Chief Marketing Officer
- Head of Digital
- Senior Category Manager
- Geologist / Geochemist / Geoscientist
- Senior Engineering roles
- Head of Health Safety Environment (HSE)
ProCapita’s in-house Research Team is continually updating our Manufacturing sector Executive Database. Therefore, we are always aware of the status for all related talent.
Above all, we provide market leading access to the specific type of professional that a client may require.
ProCapita starts to deliver qualified and interested executive candidates within 7 days of starting a Headhunter assignment.
What makes us different:
- We are the only boutique executive search firm in Indonesia, British owned and managed.
- That is to say we provide Old-School Direct Approach Only Headhunter Services.
- Meanwhile, the majority of local Recruiters operate as “Recruitment Agencies”. They rely on Social Media Job Adverts to attract Active candidates.
- However, as a true Headhunter Firm we never use job board advertising. For senior level hires, online job adverts are far too public and an inappropriate way to gain candidate interest.
- In short, we always Directly and proactively approach all relevant talent for a client position. After that, we professionally market the role and our client business.
99% of ProCapita’s hires involve “Passive Candidates”. Executives that are currently employed and not job seeking when we approach them.
- Importantly, for clients that require confidentiality, we have a significant track record of completing “No Name Searches”. In other words, we only reveal a clients name once a candidate is selected for interview.
- As a boutique we focus on quality vs quantity and provide a premium 24/7 client service.
- In addition, we manage the entire recruitment process, making our clients life easy.
- Our Consultants are proactive and honest in client communication, providing market specific information and insights. This helps to ensure a successful placement.
- We are happy to work on a Success Fee (Contingency) basis. Therefore all risk sits on our shoulders. If we don’t succeed we don’t invoice.
- In conclusion, our consultants are senior local market Headhunter experts with a combined 70+ years of executive search experience.
Similarly, please check This Article which explains the Differences between a Headhunter Firm and a Recruitment Agency.
For Industrial or Final Goods Producers that wish to Recruit Executive Talent in Indonesia, you can submit your Enquiry Here. Or reach us through our Contact Details Here. A Consultant will respond within a few hours.