Sweden-based security service provider Gunnebo Security Group is looking to see its Indonesian business grow by better than inflation, especially with support from infrastructure projects and its newly installed cash-management facility, the company’s regional executive says.
Senior vice president for Gunnebo’s Asia-Pacific region, Sacha de La Noe, said on Tuesday that his company would keep its investment focus on cash-management products, one of the group’s backbone businesses, while at the same time he expected growth from other lines, such as from its fire-system services.
De La Noe said the presence of a local production facility in the country was also expected to have a significant impact on regional sales, with about 70 percent of the local production being shipped to other countries, he added.
“With more cash to handle in society, we need to find more effective ways to manage that cash. In Indonesia, I see a high number of notes in circulation, and retailers are looking for better ways to handle the cash and that will increase,” he said.
The group announced in a press statement dated Jan. 15 that it would optimize its cash management manufacturing footprint by transferring production from its Trier plant in Germany to manufacturing units in Binefar, Spain and in Indonesia, to improve customer service levels and manufacturing efficiency. The Trier plant has turnover of around 9 million.
Indonesia is the second-largest market for Gunnebo in Asia Pacific, with the largest being India. Indonesia contributes around 20 percent to regional sales.
Gunnebo Indonesia country manager Hindra C. Kurniawan said his company’s revenue normally grew by around 10 percent annually. He added that his company expected that local cash-handling facilities would be its backbone in five years.
Among its attempts to boost its cash-handling business in Indonesia, Gunnebo has cooperated with taxi operator Express Transindo Utama (Express Group) since 2014 to provide cash-handling equipment in taxi pools in the greater Jakarta area.
Besides focusing on the cash-handling business, Gunnebo is also looking to see growth in other businesses, such as fire systems, which will be supported by a number of infrastructure projects in the country.
Among the company’s key projects is providing a fire system for a major power plant in Cirebon, West Java, and with the government’s massive 35-gigawatt power-generation expansion, De La Noe said the group expected an increase in future demand.
He also said that his company would work with state-run airport operator Angkasa Pura to provide security services in 32 airports that were being built and expanded across the nation. He said that a discussion with the airport operator was scheduled in March.
The company is also involved in Jakarta’s Mass Rapid Transport (MRT) project, providing, among other facilities, entrance security and ticketing, with De La Noe stating that the MRT’s security system was among the group’s key businesses.
According to a previous report, Gunnebo produces 30,000 safety deposit boxes annually; 60,000 fire extinguishers and 5,000 to 10,000 cash-handling machines at its factory in Cibitung, West Java.
Gunnebo had annual turnover of around 610 million in 2014. It has 32 sales companies worldwide, 11 factories across the globe and around 100 additional networks. Its businesses include cash management, safes and vaults, entrance security, electronic security and specifically in Indonesia, fire security.