TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Otis eyes booming construction market
As the country experiences a construction boom across every sector, US-based elevator and escalator maker Otis is set to strengthen its position in Indonesiaâs fast-growing economy
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A
s the country experiences a construction boom across every sector, US-based elevator and escalator maker Otis is set to strengthen its position in Indonesia's fast-growing economy.
'We want to increase our market coverage in Indonesia,' Otis Asia Pacific president Patrick Blethon told The Jakarta Post.
With 65 percent of the country's population projected to move to big cities like Jakarta, Medan or Surabaya by 2030, he said, this condition will be favorable for their businesses.
'We see very strong opportunities here and we believe that demand will continue to grow over the next 20 to 25 years,' he said.
According to data from the Public Works Ministry's Construction Agency, government-run construction projects in the archipelago were worth around Rp 390 trillion (US$40.17 billion) throughout this year, up 25 percent from the Rp 310 trillion made last year.
Apart from roads and bridges, the construction projects include government office buildings and smaller airports.
Property consultant Colliers International says that at least 61 new hotels offering an additional supply of 6,000 rooms have been confirmed to enter the Jakarta market by 2015, which will create demand rise for escalators and elevators.
In the condominium sector, Cushman & Wakefield reports that sales activities are expected to rise in 2013 as demand from both investors and end-users are high. A total of 57,318 units are predicted to be launched this year.
In a bid to support local market penetration, he said that the firm planned to introduce the GeN2 Switch elevator by the end of the second quarter.
Otis Asia Pacific sales, marketing and communications director Hermant Jolly said that the new product featured a new innovative energy regeneration system that allowed its elevators to continue functioning normally for an extended period of time during power failures.
Moreover, as the demand for vertical moving transportation systems has shifted from North America to Asia, Otis recently opened a center of expertise in Shanghai, China.
The firm is also considering to open a manufacturing plant in a Southeast Asian country in the future.
