A few years ago, at a dinner party, a leader of Sany Heavy Industry proposed to "go overseas", many people were drunk, and today everyone is already flocking to it, and many companies are either stepping on the overseas market with one foot, or on the way to overseas, because the domestic involution road is too difficult.
/ construction machinery
Text |Today's construction machinery columnist
This article is about 3300 words, and the reading time is about 7 minutes.
From the first time I came to Indonesia in June 2023 to explore the market, to the business transaction half a year later, although I experienced a thrilling life and death accident in half a year, I am glad that the business has made progress. At present, the understanding of the Indonesian market is only scratching the surface, and I was invited to talk about my own experience, hoping that through a hole in the view, through personal experience of thinking, through learning and selling, I can provide a little reference for friends who want to go to sea.
Open the road in the mountains and build bridges in the water
Yuejia, Sichuan, where the author is located, is the first Weichai Lovol businessman to set up a company abroad. Come out and start a company to do business,The author's biggest experience is that "the plan does not change quickly", and there is a feeling of "two eyes and one smear". The only thing I can tell myself is: talk about it when you encounter a problem. That is to say, we must have the spirit of "opening the road in the mountains and building bridges in the water", and solve what problems we encounter. The phrase "there are always more ways than difficulties" is really a useful chicken soup here.
There is a saying in Indonesia that if you follow the rules, you can solve 90% of the problems; If you have the strength, you can solve 90% of the problems. For example, if you pay a tip of 50 to 100 yuan when entering the customs, you will pass it very smoothly, otherwise various inspections will delay a lot of time.
Decide on the entrance based on the actual situation
Companies that have just come out or come out often don't know where to start and how to do business. The author's experience is that there are three situations.
First, large-scale production enterprises or companies can first set up offices, then set up branches, and finally directly build factories to implement localized operations. If there is no problem with the certainty of the market, directly registering a company or directly establishing a factory for production is the most direct and conducive way to business development.
Indonesia** encourages foreign capital to build factories in Indonesia, which will reduce the import cost restrictions of complete machines and spare parts. There are quotas for some goods, and Chinese companies cannot get quotas, such as tires. Sany Heavy Industry has built a factory in Indonesia to produce construction machinery, and Shandong Heavy Industry held an overseas business conference in Indonesia on January 23, 2024, announcing a joint venture to produce heavy trucks and establish a financial service company in Indonesia, laying the foundation for expanding the Indonesian market.
Second, small businesses or companies can develop one or two customers first, and then register a company and conduct business, which is safe, low cost and strong certainty.
The third is to send one or two people to Indonesia, or through intermediaries to participate in overseas exhibitions and other opportunities to get some negotiation opportunities, looking for local partners in Indonesia, first carry out some small exploratory business, establish trust, and then start a larger investment and market development.
Abide by the law and respect customs
Each country has its own specific and unique laws and customs, and businesses of all sizes and industries must operate in accordance with the law. For Indonesia, the author believes that the following aspects need to be understood and paid attention to:
FirstThe registered capital is not paid-in. The establishment of a leading import and export company can be wholly foreign-owned, and there is no time limit for the payment of registered capital; However, the qualifications of building and construction companies are higher, they must be joint ventures with Indonesians or companies, and companies with higher qualifications require Indonesian companies to hold 67% of the shares.
Second, the company's HR specialist must be Indonesian.
Third, Indonesia's tax system is complex, and it is said to be the most complex in the world. The value-added tax rate of PPN is 11%, and the import duty on construction machinery and equipment is currently zero; There are many types of income tax PPH, PPH21 22 23 24 25, etc., and the tax rate is 2% to 25% range, income tax is a prepayment system, you can apply for a refund at the end of the year, but it is generally not recommended to apply, because the application for refund needs to be audited. The requirements for general taxpayers are stricter, requiring a fixed place of business and on-site inspections, similar to the requirements for general taxpayers in China.
Fourth, if you only do a few import and export business, you can not set up full-time financial personnel, and entrust the first company to keep accounts and declare taxes. If you plan to operate for a long time, it is advisable to recruit a full-time finance person. There are many first-class companies in China, such as company registration, bookkeeping, tax declaration and customs clearance, which provide efficient and professional services for Chinese companies to go overseas.
Fifth, Indonesia is a country of faith, and Indonesians are friendly, low-key, and polite. About 70% of Indonesians believe in Islam, 7% believe in Catholicism, 5% believe in religion, 5% believe in Buddhism, and 13% of Indonesians believe in other religions, and there is a certain historical conflict with Chinese beliefs, so Chinese ** need to pay attention to safety and reduce going out during the period.
Sixth, the pace of life and work in Indonesia is slower. Airports, docks, and stations all have clean prayer rooms, and there are 5 prayer times a day, and you can choose a time to pray, and the prayer time is not working. 40-hour work week, overtime is not recommended, and overtime must be paid for overtime; In addition to various "red days" off, employees also have 12 days of annual leave every year.
Go fishing where there are fish
In 2023, the best export market for China's construction machinery is Russia, followed by Indonesia. These market data can be checked in the customs or China Construction Machinery Industry Association, and should give priority to choosing a good market with sales to expand, first, the market is good, there is demand, and it is easy to develop; Second, there are many Chinese who go, and it is easier to communicate.
Indonesia's infrastructure is weak, similar to the state of our country 2000 years ago. At the same time, there are abundant mineral resources such as steel, coal and nickel, and in recent years, the new focus is on economic construction and the adoption of an open policy, so there are more opportunities, and of course fish is also expensive.
In 2023, the sales volume of Indonesia's excavator market will be about 15,000 units, and Chinese brands have accounted for half of the country, of which Sany Heavy Industry is still leading, with a market share of about 30%, far ahead. Sales are expected to be between 15,000 and 20,000 units in 2024.
It is difficult to break through the export of second-hand mobile phones
In addition to new machines, domestic businessmen and industry colleagues pay the most attention to the second-hand mobile phone market. Whether it is an excavator or a loader, compared with China, the second-hand phone does have advantages, especially the excavator accessories are expensive.
But countless second-hand people, after the inspection and exchanges are in vain, the reason is that the import of second-hand excavators is subject to a quota system, and foreigners and companies can hardly get import quotas, through the quota of Indonesian companies imported, there is little profit left, if not through the quota import, is smuggling, the risk is extremely high. Indonesia's second-hand mobile phone market is dominated by those who have obtained the share of imports.
Follow the faucet and stay close to the service
China's construction, hydropower, high-speed rail and automobile industries, central enterprises and state-owned enterprises in the "Belt and Road" policy to promote, the first to go out, played a leading and driving role, the need for a large number of related supporting and service enterprises, for the domestic construction machinery manufacturers and business to provide a lot of cooperation opportunities, domestic related enterprises have a certain priority advantage, just like Indonesia a lot of quotas only to Indonesian companies.
What we need to do is to give full play to our advantages, be close to the construction site and the market, and carry out the last mile service, and when this service is done, the business will come.
As for the difficulty in the selection of fund settlement and sales methods, it will be gradually solved with the deepening of the market. Most of the time the problem is solved through development, without which it is difficult to solve the problem.
Concise and efficient, and strive for the long term
To carry out overseas business, we must set a good position, what is positioning? It is whether you want to do a business in the short term and make some money or take a long-term view and plan for the future. Different positioning and different starting points determine your different practices and attitudes towards the world, customers and the market. The author has the following suggestions for the positioning of overseas business:
First, build a team, concise and efficient. To build a team, we should choose experienced and enterprising members, be concise and efficient, shorten the process, and make breakthroughs quickly.
Second, people-oriented, and strive for the long-term. Talent is always the first, from the organizational structure, to the staffing, as well as the remuneration package, business center, including the aforementioned financial accounting, system construction and incentive measures, etc., we must consider the construction in the long run.
The author very much agrees with the speech of Tan Xuguang, chairman of Weichai Heavy Industry, at the ceremony of overseas soldiersWe need to think more about what overseas soldiers are thinking. What do they need in life? What do their dependents need? Let the front-line soldiers rest assured, let the families rest assured! Only when an enterprise solves the needs of its employees can employees take the initiative to solve the needs of its customers.
Working for a long time in a place where you don't understand the language, eat unaccustomed to it, and have a certain amount of risk is not an easy task, and it is not something that can be solved by simply paying a high salary. It is necessary to have the double comfort and guarantee of salary and humanity, which is why Huawei has the requirement that employees with overseas experience can be promoted in addition to high salaries. In Indonesia, I often meet people who want to return to their home countries despite high salaries.
Report the group for warmth and common development
The biggest feeling when I came to Indonesia was that there were Chinese everywhere, and there were Chinese everywhere. On the elevator, you can meet Chinese Chinese or Chinese, and there are also areas where our Chinese live and work are concentrated, where the sense of strangeness will be reduced, and when there is a poor communication or difficulty, everyone will take the initiative to help. One time I couldn't get a taxi at night, and I couldn't use the local taxi software, so a Chinese lady took the initiative to ask if I needed help to call a taxi.
Although there is a saying "don't buy Chinese things, Chinese pit Chinese", but this is not the mainstream, there are good people and bad people, the key is to ask yourself: Who are you?
Recently, Chinese chambers of commerce at all levels have also been organized in Indonesia to help Chinese and enterprises conduct business, exchange and connect resources. When I usually meet Chinese, everyone also takes the initiative to add WeChat and stay **, which obviously has a strong nostalgia.
Although Chinese restaurants or other services offered by the Chinese community are a little more expensive, they are worth it compared to the convenience provided.
Whether it is to adjust and adapt at the bottom of the domestic market, or to come out to conquer the overseas market, the road ahead is long. When I return to China, when I read this article, I will soon be in the New Year of the DragonHere, the author wishes all colleagues in the construction machinery industry to explore up and down in the new year, get through the trough period, and usher in a new future.
Zhuozhong construction machinery media organization
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