PROSPECTS OF FIREPROOF METAL FURNISHING INDUSTRY IN INDONESIA
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
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 : ........