Amid intense competition in the heavy equipment industry in Indonesia, on 16 May 2023 INDOTRUCK UTAMA or ITU launched two of its flagship products, namely the SDLG E6138F Excavator for the forestry and palm oil sectors as well as the new updated Wheel Loader model SDLG L936H.

The launch event which took place at Gate 3 of the Taman Mini Indonesia area was very lively because it was witnessed directly by ITU customers from various regions such as Sumatra, Kalimantan and Java. IPO NEWS had the opportunity to conduct a direct interview with Mr. Tjong Bie as the CEO of ITU. Here’s the excerpt.

After having slumped in 2019 and 2020 due to the pandemic, the heavy equipment industry is starting to revive in 2021 and 2022. How do you see it?

The heavy equipment industry market in Indonesia will continue to grow in line with the vast territory of Indonesia requiring sustainable infrastructure development.

Since the 2020 covid pandemic, the market for heavy equipment in the construction sector has declined because government funds have been partially diverted to countermeasures against the pandemic. However, at the same time coal prices have soared so that the heavy equipment market has continued to soar especially for use in mining. Nickel mining is also on the rise due to the need for batteries for government-driven electric vehicles for a cleaner environment. For the plantation sector, the market for heavy equipment remains stable since the plantation sector is a long-term investment sector where commodity price upheavals do not directly affect investment at that time.

Until now, the foreign-made heavy equipment industry is still dominant due to the efficiency factor of production volume and also the trend of free trade in the region and globally. As a dealer, our role is to focus on providing after-sales service. In this case, human resources and an extensive service network support the operation of these heavy equipment to achieve maximum efficiency and productivity for users.

So far, who is the toughest competitor?

Depending on the type of equipment. In the large mining sector, we generally compete with premium brands due to very specific applications. In the construction and plantation sectors, we compete with all brands including brands from China.

For more info please read IPO News July 2023 edition, or call celuler number 087878260925 (WhatsApp)