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Heavy equipment producers want bigger role in govt projects
The Indonesian Heavy Equipment Manufacturers Association (Hinabi) has lamented the low demand for locally made heavy equipment.
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Competing brands: Heavy equipment owned by PT Berau Coal is used for coal mining activities in East Kalimantan, in August 2022. (JP/Indra Harsaputra)
T
he Indonesian Heavy Equipment Manufacturers Association (Hinabi) has lamented the low demand for locally made heavy equipment amid the government's push to develop infrastructure and mineral processing.
Hinabi chairman Giri Kus Anggoro suggested that the legal framework for downstream industrial development and infrastructure projects should normally boost demand for local heavy equipment. Instead, demand was on a downward trend.
“The use of local heavy equipment is still not prioritized in downstream industry and infrastructure projects,” said Giri on Sunday, as quoted by Bisnis.
Several types of heavy equipment made in the country contain relatively high amounts of local content (TKDN), such as the products from PT Pindad, PT Sakai Indonesia and PT Ultratex Indonesia that have reached 23 to 35 percent of TKDN, according to the Industry Ministry website.
Yet many ongoing projects still relied on imported heavy equipment, particularly from Chinese brands, which had intensified competition for the Indonesian market, Giri noted.
Read also: Heavy equipment sales take a dive as commodity prices plunge
“Indonesia remains one of the biggest markets for heavy equipment and it will keep growing as demands increases. This will attract more heavy equipment importers to come to Indonesia and compete with the local brands,” he explained.
