PT Kobexindo Tractors Tbk (KOBX) is preparing capital expenditure (capex) worth US$ 4 million in 2023. These funds will be used by KOBX for various needs. Main Director of Kobexindo Tractors, Andry B. Limawan, explained that the capital expenditure budget prepared this year will be allocated for operations to rejuvenation of the heavy equipment rental segment.

Regarding business prospects this year, Andry admits that volatility in commodity prices and demand is indeed an important factor and must be observed in the mining industry. Therefore, he did not deny that the current downward trend of commodity price and demand sentiment could affect the Company's sales of heavy equipment. "However, management hopes that the demand for heavy equipment products will remain stable and have a positive impact on the heavy equipment industry," he explained to Kontan.co.id, Monday (13/2).

Even so, Andry stressed, his party will continue to monitor market developments and take the necessary steps to ensure that the business continues to grow and earn profits in a sustainable manner. Throughout this year, KOBX sees the prospect of heavy equipment sales continuing to attract one of them to the mining sector. In addition, he assessed, the heavy equipment industry was still supported by demand from the infrastructure, logistics and manufacturing sectors for handling equipment and warehousing.

In fact, to counteract the hurdles of declining demand in certain sectors, Andry revealed, KOBX has implemented a diversification strategy. This method is carried out to strengthen and balance the heavy equipment product portfolio. He gave an overview of the infrastructure and construction his party entered through the Dynapac & Doosan Portable Power product. Then for the manufacturing sector, Kobexindo's logistics enters through Jungheinrich and RITE-HITE and Doosan products. As for environmental solutions, they have HAKO & Makro products. "As for mining, our superior products come with the Doosan, Terex and Mercedes Benz brands," he said.

Even though they have disclosed their capital expenditure and business strategy, Kobexindo's management has not been able to detail this year's sales target. Andry stated that the target for 2023 was still under internal review, so it could not be delivered yet.

Source: https://industri.kontan.co.id/news/kobexindo-tractors-kobx-anggarkan-capex-us-4-juta-pada-tahun-2023