Heavy Equipment Production & Sales on the Rise in Indonesia

23 October 2017

Source: Indonesia Investments

Heavy Equipment Production & Sales on the Rise in Indonesia

Production and sales of heavy equipment in Indonesia is recovering more markedly in 2017 on the back of rising activity in the country's mining and construction sectors. Between 2012 and 2015 sales of heavy equipment plunged sharply in Indonesia. In 2016 a modest recovery was seen. This year, the recovery of Indonesia's heavy equipment sector is progressing at a faster pace.

According to data from Indonesian Heavy Equipment Manufacturers Association (Hinabi), a total of 4,036 heavy equipment units were manufactured in Indonesia up to the third quarter of 2017, a 59.7 percent increase compared to the number of units manufactured in the same period one year earlier.

Therefore, Hinabi Chairman Jamaluddin is optimistic that the full-year target can be achieved. Hinabi targets to see a total of 4,400 heavy equipment units being manufactured in Indonesia in 2017. Jamaluddin added that the mining, construction and agriculture sectors are crucial for the direction of the heavy equipment sector. The more activity in these sectors, the more heavy equipment units need to be purchased.

Sara Loebis, Corporate Secretary at United Tractors, confirmed that the company's heavy equipment sales are on the rise so far in 2017. In the January-August 2017 period, United Tractors sold 2,411 heavy equipment units, up 74.1 percent year-on-year. United Tractors is the clear market leader in Indonesia's heavy equipment industry. Also Hexindo Adiperkasa and Intraco Penta detect improving operational and financial figures.

Regarding heavy equipment production and sales in Indonesia, the most popular item is the hydraulic excavator. For example, of the 3,678 heavy equipment units sold in Indonesia in full-year 2016, 3,418 units involved the hydraulic excavator, a unit that is most commonly used for digging rocks and soil.

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