Global Business Guide Indonesia

Hariff Daya Tunggal Engineering Hariff Daya Tunggal Engineering Hariff Daya Tunggal Engineering Hariff Daya Tunggal Engineering Hariff Daya Tunggal Engineering Hariff Daya Tunggal Engineering Hariff Daya Tunggal Engineering Hariff Daya Tunggal Engineering
JOINT VENTURES | INVESTMENT
Hariff Daya Tunggal Engineering | Mr M. Syaban
Mr M. Syaban

We are very much focused on optimizing local content and have been active in manufacturing our own parts for power system and telecommunication projects so as to lead the way in encouraging the market to embrace local products.

Mr M. Syaban, President Director

PT Hariff Daya Tunggal Engineering is well established as an engineering company involved in multiple sectors in Indonesia. What more can you tell us about your company’s history and its main strategies for the future?

Hariff Daya Tunggal Engineering was founded in 1982, and was initially focused on offering value added technology solutions driven by the expertise of a small team of six engineers that would go on to become this company’s founding fathers. From this background, we have sought to become a world-class business across several different fields including the design and manufacture of power system equipment as well as renewable energy, ICT and telecommunications. It is our vision to be able to build upon our success thus far by contributing to Indonesia’s continued economic development through the use of components manufactured in the country. We are very much focused on optimizing local content and have been active in manufacturing our own parts for power system and telecommunication projects so as to lead the way in encouraging the market to embrace local products. In this regard, our company is positioning itself to be an engine of growth while simultaneously meeting diverse customer needs for value added engineering services.

Given that your company has evolved in such a manner that it now has divisions within several industries, what do you consider your main area of business going forward?

The immense potential of the market in Indonesia presents interesting opportunities to be met by all of our existing operations. Though most of our projects are in the power generation industry, we do not see this as the only line of business to be developed going forward. We are equally attuned to developing our engineering capabilities for equipment used in the telecommunications sector, which stand to become a key part of our foundation as a company. In keeping with our aforementioned emphasis on the use of Indonesian-made components, our products for cellular operators are manufactured using 60% local content.

Taking into consideration the fact that Indonesia’s need for power systems and ICT solutions is set to rise in tandem with the country’s ongoing growth; what is your personal outlook in regards to the development of your industry?

There are two main problems in Indonesia that shape our outlook for the future, depending upon how they are addressed going forward. The first of these challenges is an electrification ratio that remains far too low. If the investment needed to tackle this problem is made, we as a company expect to benefit from new opportunities to serve as an accelerator of development by providing our power system solutions to clients across Indonesia.

The second challenge in Indonesia is its unique geography, which can create issues for telecommunication companies seeking to expand their coverage of the country. It is because of this that we decided to enter the industry through the provision of broadband wireless access well suited to the archipelago.

To further our ability to provide engineering services to projects across Indonesia in its entirety, we cooperate with local partners in every region that we operate in such as Medan, Pekanbaru, Palembang and Kalimantan, among others.

Where do you see opportunities for Hariff Daya Tunggal Engineering to take advantage of the upcoming ASEAN One Market?

We look forward to the realization of greater regional integration, particularly given that Indonesia’s new administration, led by a president with first-hand experience in running a business here, should be more proactive in encouraging the development of local industries. The introduction of regulations and incentives to support local businesses, for example, will play a significant role in ensuring that Indonesia avoids the risk of first and foremost becoming a market for other ASEAN nations, without itself tapping into the opportunities to be found in neighbouring countries.

In regards to our company specifically, we see the ASEAN One Market as an opening to explore interesting opportunities to export our products to the Philippines and Malaysia, which would come as the first step to position our company as a global player.

For the future, how does Hariff Daya Tunggal Engineering plan to further diversify and enter new business fields?

Within power systems, there are two kinds of knowledge that we have to explore: optimizing renewable energy and finding solutions to the challenge of diesel use in Indonesia. Many areas in Indonesia that do not have access to on-grid electricity generate power through diesel, and it is our plan to develop and introduce generators for these remote islands that can be powered by an alternative fuel source.

How is your company positioned towards collaboration with international investors and foreign companies looking for an experienced local partner in Indonesia?

Our company has considerable experience in working with international partners, particularly power system principals from countries such as the USA, New Zealand and Taiwan. This cooperation extends beyond identifying the best products for Indonesia, and also involves the transfer of know-how from the partner to us. We encourage companies to reach out to us to form strategic partnerships, and believe that collaboration like this will help us to grow our market and develop new engineering capabilities. At this moment, we are most interested in working with companies able to bring in the latest technology.

As a final message, what would you like our readers at GBG Indonesia to remember about Hariff?

It is our dream to build on our success in the local market to become a company positioned to serve the global market. To achieve this goal, we need partners for investment and technology.