Local industry to absorb 85% heavy equipment production

By Hiski Darmayana

The Association of Indonesia Heavy Equipment Manufacturer (Hinabi) predicts that export this year would represent about 15 percent of total production with the remaining going to domestic market in line with the nation?s booming mining sector, especially coal.

Total production is expected to hit between 9,500 and 10,000 units of heavy equipment this year. ?Some 15 percent of those would be exported. The biggest contributor to those exports is excavator, which roughly makes up 30 percent of total export,? said Hinabi Deputy Chairman Solichin recently.

Hinabi currently has 33 members of heavy equipment makers including Komatsu Indonesia and Hitachi.

On parts or components, the majority of production is going to the international market. ?About 70 percent of production of components is exported,? added Solichin.

Editing by Dadan Wijakssana