Mining Sector Stretches, Sales Of Heavy Equipment Soar

JAKARTA - The Ministry of Industry (Kemenperin) reports that heavy equipment sales show an upward trend in the third quarter of 2021.

It is stated that data from the Association of Indonesian Heavy Equipment Sole Agents (PAABI) shows that until August 2021, sales of heavy equipment in all sectors reached 8.821 units. That figure shot up 99 percent of sales in January-August 2020, which was 4.440 units.

The Minister of Industry (Menperin) said this was a positive signal for the national economy.

"This encouraging news in the heavy equipment industry is supported by the improving situation of the COVID-19 pandemic and rising commodity prices," he said in a press statement quoted on Sunday, October 17.

According to the Minister of Industry, the biggest increase in sales in January-August 2021 occurred in heavy equipment in the mining sector which reached 206 percent to 3062 units, from 1.001 units in the same period 2020.

"This is driven by the situation of high coal and nickel prices, as well as the estimated increase in the number of nickel smelters operating," he said.

Then, for heavy equipment in the forestry sector, it increased 84 percent to 1.487 units, the construction sector rose 64 percent to 3.449 units, and the agro sector by 54.7 percent to 823 units.

Meanwhile, production of heavy equipment until the end of 2021 is estimated to reach 6.000 units, or an increase of 75% compared to 2020 (3.427 units).

"As for 2022, we have a projection from the Indonesian Heavy Equipment Industry Association (HINABI), an increase in production will reach 30 percent from 2021, or close to the 2018 trend which exceeds 8.000 units," explained the Minister of Industry.

Viewed from the user sector, the projected growth of heavy equipment for the agro sector will be influenced by the price of vegetable oil (CPO) which will still be high.

In the construction sector, demand for heavy equipment will remain high as COVID-19 declines and construction projects resume. Meanwhile, in the mining sector, the need for heavy equipment remains large, following the still high commodity prices.