Challenges in Indonesia’s Manufacturing Sector 

Factories across Indonesia face structural and operational issues that hold back performance and profitability:

• Low Productivity:  Output per worker is low compared to regional peers; rework and delays reduce efficiency.
• High Costs & Downtime:  Low OEE, stoppages, and heavy reliance on manual routines increase waste and expenses.
• Supply Chain Volatility:  Dependence on imported raw materials and rupiah fluctuations drive unpredictable costs; congested ports and inland logistics add delays.
• Underused Technology:  ERP, MES, and digital systems are installed but rarely embedded into daily management, leaving “Industry 4.0” stuck at pilot stage.
• Weak Supervision:  Limited frontline skills and hierarchical management culture weaken accountability and engagement.
• Lack of Operational Discipline:  Standards and procedures are inconsistently applied, creating unstable performance and quality issues.
• Energy & Regulatory Pressure:  Rising energy costs, unreliable supply in some regions, and compliance with TKDN (local content) and environmental rules increase complexity.

How Renoir Delivers Results 

We partner with Indonesian manufacturers to turn these challenges into measurable performance improvements:

• Reliable Production:  Daily and short-interval control systems to stabilize planning and ensure disciplined execution.
• Higher Productivity:  Lean process redesign and operational excellence tools to lift OEE, reduce downtime, and cut waste.
• Stronger Supply Chains:  Smarter sourcing, improved inventory control, and logistics optimization to mitigate import dependency and bottlenecks.
• Technology That Works:  Embedding ERP and digital tools into management routines so technology investments deliver ROI.
• Frontline Capability:  Training supervisors, building leadership confidence, and embedding shopfloor routines.
• Operational Discipline:  Structured accountability systems so procedures are followed every day, not just during audits.
• Sustainable Compliance:  Ensuring TKDN, energy efficiency, and environmental standards are met while protecting margins.