Iwatani Industrial Gas Indonesia (IIGI) of Iwatani’s local subsidiary in Indonesia forecasts its sales amounting to JPY2.4 billion for the term of FY2019 ending December which is an increase of 5.7%. In the background of the increased sales there was a growth of 10% in the number of users reaching about 660 in total comparing with the result of previous year. Taking advantage of the merit as the only Japanese gas manufacturer in Indonesia, they say IIGI has been enjoying a soaring growth rate in the business these several years. In June of this year IIGI bought a land of 16 thousand square meter adjacent to the head office to expand the business although no detail of use has been disclosed.

IIGI has its headquarters in the Karawang Industrial Complex which is located about 60km east of the center of Jakarta. The main gas users of motorcycle and automobile manufacturers from Japan gather in the complex.

The ASU having a capacity of 3000 m3/h for nitrogen and 1000 m3/h for oxygen which was built there in 2016 still continues its full operation now. In the attached general filling plant IIGI fills air separation gases, carbon dioxide, mixed gas and fluorocarbon, which are packed for use into about 40 thousand cylinders.

The major region for business operation includes the adjacent area of the above-mentioned industrial complexes of Karawang and also Cilegon which is an industrial port city where there are chemical and steelmaking companies.

IIGI is now doing business with more than 30 local distributors, but supplies liquid gases directly to only limited five companies. The geometrical form of Java Island is narrow and lying to the east and west directions having such a length as two thirds of Honshu, Japan. Since there a chronic issue of traffic jam, such a regional strategy is important.

The traffic jam in Indonesia is terrific as they make fun of it saying “The row of cars might be longer than the roads”. At present it may take 1.5 to 3 hours for the way of 60km from the central part of Jakarta to the company. In the rainy season, the time may be much longer.
To achieve more effective logistics to transport gases, IIGI has been taking some measures such as the aforesaid regional considerations for transportation, early morning deliveries and the delivery control providing monitors of remaining gas at hospitals or large-volume consumers.

Masahiro Murata, president of IIGI says, “IIGI has already established good relations with regional business partners and among the local staff members each other. In addition the business control system is well established as oriented in the Japanese-style management, and there seems to be a well experienced sales expertise”.

Regarding the sales strategy in future, he gave quite an enthusiastic comment, “We first tackle the target to increase surely our sales volume of oxygen and nitrogen to secure a stable operation of ASU. Considering the traffic jam problem in this country, it is important to improve the current business conducting efficiency. Based on the enhancement of partnership with the local distributors, we would like to make out a regional strategy.

At present we are discussing with our Merchandizing Department, we intend to seek steadily an expansion of our business taking advantage of the land area of 16 thousand m2 which we have newly obtained.”