Automotive Sector Accelerates Imagin Manufacturing Business

Unlike the financial and trade sectors, the digitalization of manufacturing in Indonesia is relatively new. A number of processes are still carried out manually or traditionally. This means that the potential for digitalization is still large. It should be noted that the manufacturing industry contributes the most to Indonesia's GDP, reaching 16,3% in the second quarter of 2023.

Post-seed funding received last year, imagination talks about automotive market potential, project management solutions, and market scalability. Since the last five years, Imajin has contributed to digitalizing this sector. Starting from a manufacturing consultant in 2014, then offering a new way by developing a platform to bring together supply and demands. 

Electric vehicles accelerate automotive market

Imagination is online marketplace for small and medium industrial manufacturers (IKM) that offer services molding, casting, engine assembly, and automotive component manufacturing. Imajin also develops project management solutions to help users monitor work.

The target market is manufacturing owners and business owners/brand with the main focus on supplying metal and plastic materials. Production demand is dominated by the automotive, electronics and packaging sectors.

The electric vehicle (EV) trend that the government has been pushing in recent years is said to have had an impact on Imajin's business. Co-Founder and CEO of Imajin Chendy Jaya said there were more than 20 brand EVs are taking the market cake in Indonesia, competing to provide product excellence.

"It's something we think has potential. There's a lot of enthusiasm for it brand new. Not just EVs, brand Big automotive companies also release many new models. "This helps encourage Imajin's production because most of our clients are automotive," he said when contacted DailySocial.id.

Quoting Indonesian CNN, currently there are 50 EV development companies in Indonesia with a total investment of more than IDR 3 trillion. In line with efforts to increase the Domestic Content Level (TKDN), brand New companies entering the Indonesian market inevitably have to build or partner with local manufacturers.

"Owner brand can partner with our manufacturers so we can produce," added Chendy. Market value electric vehicles in Indonesia estimated at $20 billion or more than IDR 300 trillion. Meanwhile, the TKDN of electric vehicles is targeted to reach 40% by 2026.

Quality standards

In developing its platform, Imajin doesn't just connect, but also adds quality assurance in the process. This is to ensure that production can meet quality standards for each component.

"Unlike marketplaces, look for manufacturing partners, meet them directly and make transactions, it is difficult to ensure the quality. Now, customer Sometimes I worry about whether the order can be done correctly. That's why we are involved in the process. We add quality assurance, get up quality center in Cikarang. Before sending to customer"The product is sent to Imajin first [to check the quality] according to standards," he explained.

Then, Imajin also added a number of features to make project ordering easier. For example, the Quick Note feature makes the design and calculation process easier before processing it to manufacturing partners. Currently, only a few materials can be processed via the Quick Note feature.

There is also a Dashboard that helps users monitor project management, from processing time to when the product is ready to be shipped. Chendy said that further feature additions would be adjusted to the needs of partners/users.

"There weren't any before dedicated dashboard, activities are still carried out manually. This can trigger miscommunication from vendors as well customer, like approval or change in size. "That's why we are trying to simplify all the processes through the Dashboard," he said.

The Java market is still broad

Japan is an easy market for Imajin to start its expansion outside Indonesia. Moreover, the automotive industry is very large in the Land of the Rising Sun. "We've [had] a partnership there for a long time, but now we want to get serious. There is angel investors "We are the representatives of Imajin there," he added.

There are more than 600 local manufacturers partnering with Imajin, starting from mold maker, die maker, injection, to fabrication. More than 100 customers have also used its services, including Japanese companies in Indonesia.

Imajin is the first startup in Indonesia to be appointed by the Ministry of Industry as a manufacturing hub. The expansion will also follow recommendations from the Ministry of Industry as the Manufacturing 4.0 program is running.

"We are still doing research to expand to Batam, hopefully it can be realized in early 2024. We are also researching in Kalimantan and Sumatra. However, future expansion depends on the Ministry of Industry's program. If the direction is in that direction, we will enter. Currently most manufacturing is on the island of Java . The market is still very large for us to enter."

In the midst of the busy profitability trend in the startup industry, Chendy was reluctant to comment further. However, he said, Imajin was founded for almost 10 years and had been operating with its own capital for a long time before finally being successful funding from East Ventures. Chase growth not become goal his business.

"We're used to it bootstrapped with what we have, it's becoming our culture. We grow with responsibility."