Strategic Channel Network Built for Indonesia
—Feature Story 12 of the 20th Anniversary of LiuGong’s Globalization
In its 20 years of international development, LiuGong has always adhered to a comprehensive globalization strategy and continued to develop and optimize its global dealer network.
Indonesia is one of LiuGong’s strategic markets. It is not only crucial for LiuGong’s success in the Asia-Pacific region, but also significant for the realization of LiuGong’s global vision. For more than 10 years, LiuGong has been deeply cultivating the Indonesian market, working hand in hand with dealers every step of the way to take on the complex and changing market conditions and cope with different risks and challenges.
LiuGong Indonesia was established in 2019, it now has nearly ten dealers in Indonesia after three years of development. By providing perfect service and support, LiuGong became the first and only Chinese company that Panca Traktor Indonesia (PTI for short) has worked with, and the two parties have worked with each other for the longest in Indonesia.
Headquartered in Jakarta, PTI has nearly 200 staff, almost half of which are technicians. It has opened up to 8 branches and has 3 representatives all over Indonesia. It also plans to open more branches in other cities in Indonesia to better reach and serve customers. PTI has both parts centers and a work shop in Jakarta. It also sets up service points for customers with job sites that are far away in order to ensure fast response and timely parts supply.
Since the price of large commodities is increasing, there is great demand for construction equipment in Indonesia. So far, PTI has sold thousands of LiuGong machines to the Indonesian market. “Heavy equipment is more about service and support. We all know that customers care more about fast return on investments,” remarked President Director of PTI, Andianto Hasnan, who has been in this industry for over 20 years, “The quality of LiuGong machines has always been improving, and the price is quite economical. What’s more, its delivery time is shorter than that of other brands. PTI and LiuGong have grown and thrived together. I believe that future cooperation between LiuGong and PTI will be very promising,” said Andianto.
Great companies always have similar traits. Owner and CEO of Probesco, Saripin Taidy remarked: “There are three factors that are key to building a good company and being a good dealer: loyalty, strategy, and execution. This is our core competency, and it has helped us to stay young and energetic. It is also what differentiates us from the trading company.” Probesco officially signed the dealership agreement with LiuGong in 2019. It has more than 20 operating networks spanning the 5 major islands of Indonesia. All of the offices are situated in strategic locations near customers. Besides being equipped with modern facilities, workshops, and warehouses, all the offices have adopted the integrated 3S (Sales center, Service center, and Spare parts outlet) concept for customers’ convenience.
“Indonesia is a huge market for construction machinery, with great potential and a lot of natural resources. It’s also one of the puzzles that can fit into LiuGong’s globalization strategy,” remarked Saripin. “LiuGong never says ‘NO’ and always sets out to find solutions. Probesco holds the same philosophy. By working more closely together and communicating more, I believe that we can have a better future together.”
Besides national dealers, LiuGong Indonesia also works with regional dealers that are familiar with the market, requirements of local customers, and policies within the area. From the beginning of this year, LiuGong has signed dealership agreements with several regional dealers that have branches across different regions.
In the future, LiuGong Indonesia will continue to make new plans with the existing national dealers. While strengthening cooperation with new regional dealers, it will work to improve regional dealer capacity as well as service coverage, and focus on the regional and industry customer bases. In addition, LiuGong has innovated around its dealer cooperation model in order to carry out channel assessment and create a high-quality dealer network that covers all parts of Indonesia.