Industry & Marketing Prospect of HEAVY EQUIPMENT in Indonesia, Heavy equipment business has declined in the last three Year or from 2013 to 2015, but from 2016 to 2017 seems to rebound. The increasing of heavy equipment business in Indonesia has recently been triggered by the high demand of heavy equipment for the construction, mining and plantation sectors, especially since President Jokowi launched the accelerated program of infrastructure development in almost all areas of the country, especially in eastern Indonesia such as in Papua. Infrastructure development is to improve the level of Indonesian economy evenly throughout the country.
Similarly in big cities such as Jakarta, Surabaya, Medan, and others, with incessant infrastructure development, such as the construction of toll roads in Java and Sumatra, the construction of LRT railway in Jabodetabek area and in Palembang and MRT in Jakarta. The project construction will surely have a positive impact for the progress of the heavy equipment industry in the country.
in 2017, Indonesia’s heavy equipment sales are dominated by three sectors: construction, mining and plantation. The high demand for heavy equipment in the construction, mining and plantation sectors has prompted heavy equipment manufacturers in Indonesia to increase their production capacity, from a total capacity of 10,000 units per year.
With improving heavy equipment business, Bizteka is trying to examine the extent to which the market value of new heavy equipment and how the procurement system of heavy equipment is in the Indonesian market.
This report is prepared based on primary and secondary data. The primary data were obtained from interviews with producers, while secondary data is obtained from relevant government agencies such as the Ministry of Industry, Central Bureau of Statistics, Investment Coordinating Board and data banks in Bizteka – CCI.