Otis eyes booming construction market
The Jakarta Post
As 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.
You might also like :
- Father-son duo arrested over alleged drug dealing
- China vows to protect interests as US eyes trade sanctions
- Wu's fans skip Chinese New Year for NBA All Star celebrity game
- Vatican revives pope's sexual abuse panel
- Italy's country doctor making house calls on horseback
- India, Iran agree to step up efforts to help Afghanistan
- Indonesia mulls ban on maids to Malaysia
- Fitch raises Greece's debt rating, citing stability, growth
- Adelina’s family demands compensation
- Pakistan child killer handed four death sentences