National heavy equipment production based on data from the Indonesian Heavy Equipment Industry Association (Hinabi) rose 2.98% to 2,176 units in the first three months of this year. Chairman Hinabi Jamalludin stated that heavy equipment production in 2023 will still experience an increase in demand, especially in the mining sector.
"Mining is still showing positive demand so the increase is quite significant," he explained to Kontan.co.id, Thursday (27/4). Jamalludin revealed that the demand for heavy equipment from the mining sector came from coal and other minerals. However, coal still dominates so that it can be said to support the increase in national heavy equipment production earlier this year.
The increase in demand caused the production of dump truck type heavy equipment in the first quarter of 2023 to increase by 73.84% on an annual basis to 113 units from the previous 65 units in the first quarter of 2022. The increase in production was also experienced by heavy equipment type hydraulic excavator by 1.1% to 1,834 units. The production of heavy equipment still dominates or 84.28% of the total production during January-March 2023. Motor grader production at the beginning of this year was 31 units or higher compared to the same period last year of 29 units.
However, specifically for bulldozers, there were 198 units, down 3.4% on an annual basis from the previous 205 units. At the beginning of this year, Jamalludin said that the supply of materials that had been hampered in 2022 would start arriving in early 2023. Thus, heavy equipment production was quite booming in the first three months of this year.
"Although demand is still quite high, business actors must still be aware of a decline, domestic demand is still good, but from abroad it is corrected," he said. Throughout this year, Hinabi targets national production of heavy equipment to reach 10,000 units or equal to the total installed factory capacity.
