Production of heavy equipment members of the Indonesian Heavy Equipment Industry Association (Hinabi) throughout 2021 increased significantly when compared to 2020. In 2022, heavy equipment business players are optimistic that the increase in demand for heavy equipment will continue.
Launching Hinabi heavy equipment production data, the total production of heavy equipment in 2021 is 6,740 units, up 96.6% yoy from the previous 3,427 units in 2020. Last year, heavy equipment production was dominated by Hydraulic Excavators, which amounted to 6,133 units. followed by Bulldozers with 410 units, then Dump Trucks with 111 units, and the remaining 86 units for Motor Graders.
Chairman of the Indonesian Heavy Equipment Industry Association (Hinabi), Jamalludin explained that throughout 2021 the demand for heavy equipment was very large. As for the realization of production in 2021, which is 6,740 units, it is supported by the mining sector, especially due to the significant increase in coal prices.
"Then in 2022, we see that demand will also be very large. Hinabi's production plan will reach 9,000 units or even more. Meanwhile, Hinabi's production capacity will be 10,000 units," he explained to Kontan.co.id, Sunday (30/1).
Jamalludin said the sizable demand in 2022 was also influenced by the impact of 2021 demand which had not been fully met. The problem faced in 2021 is that when the Covid-19 pandemic subsides, the demand for heavy equipment suddenly increases, while business actors experience material limitations and limited man power because during Covid-19 there were quite a lot of workforce reductions.
The management of PT United Tractors Tbk (UNTR) also sees an increasing demand for heavy equipment throughout 2022.
UNTR Corporate Secretary, Sara K Loebis said the business prospect for 2022 is estimated to be still positive with the large demand for heavy equipment in almost every sector. "We estimate that next year's sales can increase by around 20 percent," he explained.
Sara sees that the mining segment needs heavy equipment and product support services the most. This is supported by positive commodity prices. In addition, the construction and plantation sectors also showed positive demand.
Sara said that UNTR's focus in 2022 is to fulfill customer needs for heavy equipment and superior after-sales service, so that customers can develop their business optimally. For three dollars, PT Intraco Penta Tbk (INTA) also sees the same business prospects as Hinabi and UNTR.
Director of INTA, Eddy Rodianto explained that until now the demand for heavy equipment from the mining sector is still making a positive contribution.
"The increase in commodity and construction prices has also boosted sales of heavy equipment from INTA. As an illustration, until December 2021, INTA's sales of heavy equipment according to internal financial reports are 376 units or Rp 262 billion," said Eddy.
Meanwhile, throughout 2022, INTA targets sales of heavy equipment to be higher than last year's realization. Eddy said that his party projects that INTA's heavy equipment sales this year will be more than 400 units.
In addition to spurring the heavy equipment business from the mining sector, INTA's management also carries out business diversification. Eddy said that apart from encouraging sales of heavy equipment for the mining sector, his party also continued to diversify its business into other sectors such as infrastructure, agriculture, forestry, plantations, basic industries, and others.
