Annual press conference 2017 in Jakarta
Stable performance for Bosch Indonesia in 2016 Technologies and solutions tailored to local needs
- Bosch registers IDR 1.2 trillion (81 million euros) of sales in Indonesia
- Collaboration with Viar Motor opens up new opportunities for Bosch in electric vehicle business in Indonesia
- Change of leadership: Andrew Powell succeeded Dr Ralf von Baer as managing director of Bosch Indonesia
Jakarta, Indonesia – Bosch, a leading global supplier of technology and services, ended its 2016 fiscal year with IDR 1.2 trillion (81 million euros) in consolidated sales in Indonesia, remaining at a similar level from the previous year. The number of associates employed by Bosch in Indonesia remained at a level of more than 200 as of 31 December 2016, including associates from non-consolidated companies.
“Our business in Indonesia registered a stable development. With the rising middle class in Indonesia, we expect opportunities for our business to grow in the coming years. A higher purchasing power will stimulate demand for more sophisticated technologies that improve the quality of life,” said Andrew Powell, managing director of Bosch in Indonesia. According to the Boston Consulting Group, the Indonesian middle class and affluent consumers will reach roughly 141 million by 2020, and the country’s buying power will rise rapidly. The consumption trend will shift from essentials to products offering more durability and comfort, such as household appliances, electronic appliances, cars, and financial services. According to Powell, this will help spur Bosch’s business in Indonesia in all four sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology.
Tailoring solutions to local market needs
Prospects are especially picking up for the automotive industry in Indonesia. According to the Association of Indonesia Automotive Industry (Gaikindo), the total volume of the automotive market in the country increased by 4.6 percent in 2016. This was the first positive growth achieved after the slowdown in 2014 and 2015. With market conditions improving, Bosch is ramping up its business activities in its Mobility Solutions business sector to cater to local needs.
In May 2017, Bosch announced a cooperation with Viar, a leading local motorcycle manufacturer, to introduce electric motorcycle technologies in Indonesia. The Indonesian National Energy Council (Dewan Energi Nasional/DEN) projects that there will be around eight million units of electric motorcycles in the country by 2025.
The positive development of the local automotive industry has also enabled Bosch to embark on a localization project to provide ECUs (Electronic Control Units) for vehicles assembled in Indonesia.
A study conducted by the Indonesian Motorcycle Industry Association (AISI) showed that Indonesia is the third largest market for two-wheelers in the world after China and India, with sales of more than 20 million units from 2012 to 2015. In order to help reduce the rate of accidents involving two-wheelers, Bosch launched its ABS10 motorcycle technology in Indonesia in 2016. With the installation of an anti-lock braking system (ABS) in a motorcycle, fatal accidents can be prevented by increasing riding stability and shortening of breaking distances.
In 2016, the Automotive Aftermarket division launched the Advantage series of wiper blades and the Ultra Gel Battery to better meet the needs of consumers in Indonesia. The Advantage wiper blade increases the safety of car drivers by providing wiping performance for enhanced road visibility during wet weather, while the Ultra Gel Battery is a motorcycle battery with gel technology that is maintenance-free and extra durable.
In the Energy and Building Technology business sector, the Security Systems division introduced the Divar Hybrid CCTV and G Series Panel intrusion alarm in Indonesia. The home appliances division BSH introduced Oven Series 8, a new oven that helps to make cooking easier through a one-touch button design. Within the Industrial Technology business sector the Packaging Technology division strengthened its manpower to provide better services to key customers in order to adapt the rapid development of the food and beverages industry in the country.
ASEAN brand campaign: Indonesia as one of the focus countries
In 2016, Bosch launched its first Southeast Asian multi-channel brand campaign with the slogan “We help make a difference” to heighten awareness of how the company makes the lives of people a little better each day. As part of the campaign, Bosch supported six local young inventors in mid-2016 through a partnership with the Kick Andy Show, a highly acclaimed national television program, in the form of grants and study visits. These young talents created various innovations that aimed to make a positive difference to society.
In May 2017, Bosch sponsored two (out of six) of the young talents to visit the company’s research and development campus in Renningen, Germany, to experience innovations that the company is developing. The two young talents were chosen based on the number of likes, comments, and shares that they received from a social media competition on Facebook. “This trip of a lifetime, especially to Bosch Renningen Campus, has inspired us so much not only about the technology we have seen, but also about the company itself, how Bosch creates solutions and technologies that are invented for life. We have taken all positive learnings we have got from the trip back to our country and will continue to help make a difference for Indonesia,” said Raafi, one of the young inventors on the study trip.
Change of leadership at Bosch Indonesia
Since 1 July 2017, Andrew Powell had succeeded Dr Ralf von Baer as managing director of Bosch in Indonesia. von Baer had led the Bosch business in Indonesia since May 2015 and has now assumed another role within the Bosch Group. Previously, Powell was the managing director of Bosch in the Philippines and is now responsible for growing the business in Indonesia.
Bosch Group: Global strategy and business outlook for 2017
For 2017, in light of a subdued economic outlook and geopolitical uncertainty, Bosch aims to achieve sales growth of between three and five percent. And despite still heavy upfront investments in safeguarding the company’s future, result is set to rise. “Business success today gives us the leeway to shape tomorrow’s world,” said Dr. Volkmar Denner, the chairman of the Bosch board of management. “As an innovation leader, we are shaping and driving transformation,” Denner added. The focal points of this transformation are changes in the mobility sphere and IoT connectivity. By 2020, all Bosch’s new electronic products will feature connectivity. The key to this is artificial intelligence (AI). Over the next five years, Bosch will be investing 300 million euros in its own center for artificial intelligence.
In Asia Pacific, Bosch recorded a hefty 8.3 percent increase in sales in 2016 to 20.8 billion euros (exchange rate adjusted +12 percent). Bosch now generates 28 percent of its total sales revenue in Asia Pacific compared to 27 percent in the previous year.
Assistant Manager, Corporate Communications