Published on 17/11/2014
Volvo builds spare-parts warehouse in Balikpapan
Volvo Indonesia launched on Friday a spare-parts distribution center in Balikpapan, East Kalimantan in a bid to fulfill high demand for spare parts from mining activities in the province. The distribution center, locally known as a warehouse, was built with investment amounting to Rp 120 billion (US$10 million). The facility, the first in the country, was inaugurated by Swedish Ambassador to Indonesia Johanna Brismar-Skoog. Also present during the inauguration were senior vice president of logistic services Christer Svard, Volvo Indonesia president director Pierre Jean Verge Salomon and Balikpapan Mayor Rizal Effendi. “We’re optimistic about the stability of the manufacturing industry and development in Kalimantan and, generally, in Indonesia […] I wish Volvo good luck,” the ambassador said. Kalimantan is one of the most important markets for Volvo Indonesia, which in 2013 contributed to 80 percent of spare-parts demand. “Indonesia remains one of the most dynamic markets in the Volvo Group […] As the market leader in heavy-duty trucks in Indonesia, Volvo has sold more than 5,600 units of European trucks and 1,800 units of Japanese trucks for various applications: general cargo/transportation, mining, forestry, construction and oil and gas,” said Verge Salomon. “With the $10 million investment in this distribution center, we are confident that the delivery time of the spare parts to the customers can be further reduced.” Standing on a 2,500 square meter area in the Puninar Warehouse Complex, the facility is located on the outskirts of Balikpapan or about 20 kilometers from the city center, from which it can be reached in about 20 minutes by car.
The warehouse offers services to three makes, namely Volvo trucks, Renault trucks and UD trucks. Companies that enjoy the facilities are United Tractors, Indotraktor Utama and Eka Darma. Balikpapan Mayor Rizal Efendi welcomed the presence of Volvo Indonesia in the city. “I hope the Volvo services will run smoothly in East Kalimantan, particularly to support heavy equipment for mining. The city administration hopes local students will have the opportunity to undertake field studies at Volvo,� he said. Previously, demand for spare parts from Volvo Indonesia was met by Singapore, in a lengthy process that required considerable amounts of time. The Volvo warehouse in Singapore serves 20 countries — including Indonesia, which accounts for 50 percent of the total demand.