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INDONESIAN COMMERCIAL NEWSLETTER
July 2010

PROSPECTS OF FIREPROOF METAL FURNISHING INDUSTRY IN INDONESIA


Introduction

Fireproof metal furnishing industry with products such as safes, safe deposit boxes, fireproof cabinets  and vault doors  has grown to follow the expansion of the banking and financial sector in Indonesia. The main users of the fireproof furnishings are banks  and big companies.

In the past several years a fast growth has been recorded  for the country's banking industry marked with the rapid growth of the number of bank offices  including branch offices. In 2005, there were 11,346 bank offices in the country . In mid 2010, the number grew to 17,094 units.

Other than banks and other financial agencies like multi-finance companies  and pawnshops, major users of fireproof metal furnishings include gold traders, hypermarkets, gas fuel stations  and large retail traders, which have also expanded rapidly in the country as shown by growing number of outlets.

The strong demand for fireproof metal furnishings has prompted many local companies to invest in the industry to produce the fire proof equipment in the country. The  past five years  have seen a rapid growth of the industry marked with the production of major brands  of safe like Chubbsafe, Mosler  and  Solingen.

It is estimated the country's production of fireproof metal furnishings in various sizes averages 30,000 units per year. The production is dominated by safes as they are used more widely in the country.

This report concerns the market of fireproof metal furnishings, type's products,  brands, suppliers  and production, requirement  and market prospects.
Types of  fireproof metal furnishings 

Fireproof metal furnishings, which are put in the category of physical security system type of metal furnishings include fireproof  safes, vault doors (Vault door), safe deposit box (SDB),  and filing cabinets.

Safes are the type  of fireproof metal furnishings  that are used more widely for valuable goods, documents as apart from fireproof, they are hard to break

The growing number of businesses involving frequent transaction in large cash such as banks, modern retailers and gas stations larger supplies of safes will be needed.

Vault doors are generally used by banks . The doors are used for  vault rooms in he banks. Vault doors have high security standards as they protect highly valuable goods.

There are various brands of fireproof metal furnishings. The differences between the products lie in measure and thickness, designs and construction, materials, quality of insulator, security mechanism, resistance to fire and breaking, finishing quality (paints) and certificate,  and guarantee

Brands and types of fireproof metal furnishings available in Indonesia

Metal furnishings and  the  physical security system   are generally produced by the same company  as there is similarity in the process of production.

A survey found there are more than 20 brands of safe and fireproof furnishings found on the domestic market including nine brands which are quite popular with high quality  and security standards  for banks.

Companies supplying metal equipment resistant to fire and breaking for banks are specialist in the business such as producer of Chubbsafe which has expanding business by also producing ordinary and non fireproof office furnishings such as filing cabinets in addition to its main products  and other security furnishings .

Similarly the Mosler brand producer, which is a specialist in producing fireproof metal furnishings  has begun to also produce  storage system  in warehouse racks.

PT Lion Metal Works with its brand of Lion, PT Datascrip  and  PT Tjakrindo Mas , previously better known as producer's office furniture , have expanded business by producing fireproof furnishings . Lion, previously producing only ordinary filing cabinets has now produced the fireproof type of filing cabinets. PT Tjakrindo Mas in  Surabaya is now focusing more on business producing fireproof metal furnishings such as safes, etc.

Among the foreign brands of safes already produced under license  in the country include  Chubbsafe from Sweden. Chubbsafe is a  leader in safe market  widely used by banks in the country.

Most of the producers of fireproof metal equipment  are located in the Greater Jakarta area  and  Surabaya. Big producers generally have sales agents  and branches to promoted sales in the regions. See the following table.



Table - 1
Major brands of fireproof metal furnishings    and types of product


Producers of  fireproof metal furnishings and production capacity

There are more than 20 companies producing safes  and other  fireproof metal furnishings, but they have small production capacity. Six companies with larger capacity are the market leaders in the country.

Fireproof metal furnishing industries consist of large scale and medium scale producers. Among the big producers are  Chubb, Mosler, Lion and  Datascrip. Chubb is  the largest producer of fireproof metal furnishings supplying metal equipment mainly to the banking sector. Lion, Tjakrindo Mas  and Datascrip produce mainly  fireproof metal equipment as office furnishings.

Cassa  and  Sergeant Safes are smaller producers  producing mainly vault doors.

PT Chubbsafes Indonesia which produces Chubb safes has a larger production capacity  supplying safes  and other  fireproof metal furnishings with high standards . The company operates under license of Swiss Chubb. It has a modern factory in the industrial estate of MSQ.M.100 Cibitung,  Bekasi with computerized equipment. It has a daily production capacity of 30 units of safe  or 60 units per month. The company also produce4s vault doors  and  deposit box safes, fire extinguishers, etc.

PT Aneka Star, which produces Mosler brand of vault doors, has larger capacity for vault doors even compared with  Chubbsafes.
PT Cakrindo Mas is also a major producer of safes with the brand of Brilliantsafes, but the factory has not operated at full capacity. This company is known better as a producer of office metal equipment such as filing cabinets  and other  types of metal  furniture.

Growing demand  especially for safes, many companies, however, started as producers of office metal equipment  began to produce fireproof furnishings .

Table - 2
Producers of  fireproof metal furnishings  and  production capacity


Size of factory 

Generally, metal furnishing producers are large and medium scale  companies  with factories more than 1 hectare in size.  The widest  factories are owned by PT Lion Metal Works and  PT Cakrindo Mas, which produce office furniture  and metal furniture.

Table - 3
Producers of  fireproof metal furnishings  and sizes of factories

Production

The production capacity of all producers of fireproof metal furnishings is estimated to reach  50,000 units per year. The largest production capacity is for  safes. The  production capacity  for vault doors is around  2000 - 3000 units per year.

In 2008, the country's production of  safes totaled around 36,000 units, down to 25,000 units in  2009 as a result of the global financial crisis. In 2010, the  production is forecast to reach the 200's level.

Technical Specifications - Safes
       
The specifications offered for safes vary  depending on the sizes and security levels  or resistance to fire and breaking. The specifications of safes for banks are generally higher.

There are some of the technical specifications a buyer should  know in selecting safes : ........



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