Sales Of Heavy Equipment Kobexindo Grow 41 Percent In 2022

Photo: Doc. Kobexindo

JAKARTA - PT Kobexindo Tractors Tbk (KOBX), an integrated heavy equipment provider, managed to record sales growth of 41 percent in 2022. This figure is a temporary figure and is still waiting for the results of the audit (unaudited).

This growth was contributed by the sale of heavy mining and non-mining equipment marketed by the Company.

"Throughout 2022, we managed to record a sales figure of 168.5 million US dollars, growing 41 percent compared to the sales figure in 2021 of 119.3 million US dollars. This figure is the highest figure in the last five years. This achievement cannot be separated from the Company's strategy to optimize sales of heavy equipment units, both mining and non-mining, which are in our business segment," said Deputy President Director of PT Kobexindo Tractors Tbk, Martio, in his statement, Monday, January 23.

The high demand for heavy equipment cannot be separated from the high price of mining commodities which began in 2021. As for 2022, despite the adjustment in commodity prices, the applicable price still benefits mining owners to increase production quotas to meet demand for mining materials.

"Improving the post-COVID-19 pandemic economy which leads to easing activities while still paying attention to health and security procedures is also a positive catalyst for growth. This has triggered mining, industrial, logistics and construction business sectors that are our target market," said Martio.

Throughout 2022, management has recorded several points that must be considered to sustain sustainable growth in 2023 and in the years to come. Especially with regard to the supply unit of heavy equipment.

Some of these things include:

1. Head of production capacity for heavy equipment manufacturers2. Price of heavy equipment raw materials (Baja)3. Fleet constraints and increased logistics/transportation costs in fulfilling the demand surge4. Consumer demand level 5. Increase in interest rates and 6. Fluctuations in the US dollar exchange rate against rupiah7. The threat of the impact of the global recession

For these matters, the Company has anticipated such as an inventory strategy by projecting customer orders in the next few months, securing heavy equipment supplies, as has been done with Doosan and NHL Terex, Mercedes Benz, as well as pricing strategies.

"We are optimistic that business growth in 2023 will continue the momentum of growth in previous years. This is supported by sales of reliable superior product lines and have a high level of efficiency and is supported by pure-sale services and spare parts at our 13 branch offices in order to provide the best for our customers," said Martio.

To support the growth strategy in 2023, the Company has prepared a capex of US$4 million to support the operation and rejuvenation of heavy equipment rental units. In addition, the Company has prepared several new products that will be introduced in 2023 to strengthen product lines, both mining and non-mining heavy equipment.