Heavy equipment production jumps 68% on strong demand from miners
Saturday, August 12 2017 - 04:52 AM WIB
According to data from the Indonesia Heavy Equipment Association (Hinabi), hydraulic excavator accounted for 88.49 percent, or 2,183 units, of the total production, followed by bulldozer (178 units), dump truck (53 units), and motor grader (53 units).
?The mining sector contributed around 70 percent to the surge. This is huge,? said Hinabi Chairman Jamaludin to the paper. He said that the trend is expected to continue throughout the remaining period of this year, with production expected to reach 4,400 units by the end of the year.
IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT) has enjoyed strong heavy equipment sales during the first-half of this year, largely contributed by the mining sector (48%), followed by construction sector (23%), and the remainders by forestry and plantation sectors, the paper said.
Sales of its Komatsu brand heavy equipment in the first semester of this year surged by 69.02 percent to 1,751 units, compared to the same period of last year. Sales of Scania trucks surged by 124.80 percent to 553 units, while sales of UT trucks increased by 27.19 percent to 276 units.
UT Corporate Secretary Sara Loebis was quoted as saying that the positive trend is expected to continue throughout the rest of the year, with sales projected to jump by 100 percent to 2,500-3,000 units from around 1,200 units last year.
IDX-listed heavy equipment company PT Inraco Penta Tbk saw revenue jumped by 52 percent in the first semester of this year to Rp 726.7 billion compared to the corresponding period of last year on higher demand for heavy equipment particularly from the coal mining sector amid recovery in the price of coal.
?Since last year, the price of commodities particularly coal have been rising. This condition drove strong demand for heavy equipment from the mining sector,? said Director of Intraco, Fred L. Manibog to Petromindo.com on Thursday.
?We expect revenue to grow by 20 percent this year to Rp 1.51 trillion, to be driven mainly by heavy equipment sales, aside from additional revenue from the power plant business,? he said.
Coal price has been on the rise since last year, prompting miners to ramp up production and to resume production at previously suspended mines. The government said recently that the country?s coal production target of 477 million tons this year may be slightly exceeded. Last year, production was 434 million tons.(*)