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Indonesia’s construction equipment sector continues to grow

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Indonesia is among the world‘s most populous countries and by far the largest equipment market in Southeast Asia. Here is a view of Indonesia’s capital city, Jakarta. (Image: Pixabay)

Construction equipment sales in Indonesia are expected to exceed 17,000 units this year, following a third successive year of growth, which will take demand to more than twice what it was in the recent low point of 2015, according to Off-Highway Research in its new report, ‘The Construction Equipment Industry in Indonesia’. This volume of equipment sales makes Indonesia by far the largest equipment market of the Association of Southeast Asian Nations (ASEAN) bloc.

Although demand is expected to be somewhat volatile over the next few years, Off-Highway Research forecasts that it will remain between around 12,500 and 17,500 units up to 2022. Investment in the mining sector has been a key driver of the recent growth in equipment sales – but construction has also played a part and is expected to continue to do so. However, the 2019 Presidential election could cause a hiatus in spending.

As well as being a large market, Indonesia is considered an important manufacturing base, particularly for crawler excavators. In addition, compaction equipment, crawler dozers, dump trucks and motor graders are manufactured in Indonesia, making it an important country for component suppliers. The high population of equipment – Off-Highway Research puts this at more than 115,000 construction machines plus a further 20,000 agricultural tractors – also makes it a significant country for companies active in the equipment aftermarket.