Hinabi reduces heavy equipment allocation to the coal mining sector

By Hiski Darmayana

Heavy equipment companies grouped under the Indonesian Heavy Equipment Industry Association, or known under its local abbreviation of Hinabi, will cut down sales volume allocated to the coal mining industry this year amid the lingering weak global coal market condition.

?This is because Hinabi this year will produce more medium-sized heavy equipment units such as bulldozers and excavators with capacity of 20 tons. These types of heavy equipment will be sold to the agro industry and construction sector,? Head of Hinabi Pratjojo Dewo told Petromindo.com Monday.

Despite the expected decline, Pratjojo could not yet provide the projected sales volume of heavy equipment in the coal mining sector this year. ?What is certain, total production of heavy equipment this year is about 7,000-7,500 units,? he said.

Last year, heavy equipment production of Hinabi members totaled 7,950 units, about 85 percent of which were sold in the domestic market particularly in the coal mining sector.

Editing by Reiner Simanjuntak