Indonesia Construction Equipment Trend by harryji

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· @harryji ·
$3.47
Indonesia Construction Equipment Trend
Indonesia is facing double impact by corona virus pandemic and also massive economic recession.
But if Indonesia could make this corona outbreak infection rate lower, Indonesia is till the country where has biggest economic size and growth ratio.
Construction machinery business is a sort of index that shows the economic development status of developing countries. So I would like to see the overall Indonesia construction machine business trend to measure the development potential.

The importance of Indonesia Construction Machinery Market
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1. Indonesia construction industry has been the basement of its national economic development and the government has encouraged the construction of infra structure so the number of construction machinery that used in infrastructure field has increased continuously. 

   Joko Widodo, Indonesia President, has reduced energy subsidy and increased the budget for building infrastructure. In 2014, the total budget for infrastructure was USD 13 billion dollar and then in 2016, the total infra structure budget reached 23.8 billion dollar and it reached 29.1 billion dollar in 2017.
In 2014, the budget for infra structure was not that much because most of investment were suspended waiting the presidential election and the assembly decision.
Political instability and events influence economy directly.

   Indonesia Infrastructure Budget 2009 ~ 2017
   ![0834CE4B-CEEE-4E26-9172-D1286A991319.png](https://cdn.steemitimages.com/DQmVfqWK3WLLsvuLBoZXbgqgxo32G3fUb3iVDqQ9pgpaWAk/0834CE4B-CEEE-4E26-9172-D1286A991319.png)
   *Indonesia Treasury Department, Unit: 1 Trillion Rupiah*

   From 2015, Indonesia has increased the budget for infrastructure and this trend continued until just before the corona virus pandemic.
Indonesia government has encouraged economic development and growth through master plan for 15 years that the total target of funding amount for this project is 299.98 billion dollar.

2. Even small and middle sized companies and entrepreneurs are knocking on the door of Indonesia construction machinery market with a variety of products in the policy of encouraging infrastructure. 

   Generally large companies dominate the most of exports on specific products but construction machinery business exporters are consist of a variety of business size and its type.
 
Indonesia Construction Machinery Market Size and Trend
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Before having corona virus pandemic, global construction business had expanded for 5 years in a row and relevant construction material and machines demands had been increased as well.

In according to Construction Intelligence Center, Indonesia construction machinery market size has expanded to 68.4 billion dollar in 2017 from 42 billion dollar in 2012 by average annual 10% growth.

Construction machines of Indonesia includes Ground Leveling, Tunneling, Road Construction Machines, Construction Material Production Machines and Mining Machines.

Indonesia Construction Machinery Market 2012 ~ 2017
![E58DBEF9-B4DA-4575-A227-760D888B1337.png](https://cdn.steemitimages.com/DQmYHhEcSeBDLTjz135VHtMdnysKavY8VE19z3GQkXDnrMg/E58DBEF9-B4DA-4575-A227-760D888B1337.png)
*Source: Construction Intelligence Center, Unit: 1 billion dollar*

The major construction machinery in Indonesia are the ones used in Ground Leveling, Tunneling and Civil Engineering. And then next priorities are Mining Machines and Housing Construction machines.

Excavator market was 1.16 billion dollar in 2016 that increased from 1.04 billion dollar in 2016. in 2017, it reached 1.3 billion dollar.

As heavy industry business grow, the relevant construction machinery business also grow. Indonesia heavy industry is getting bigger in the direction of government strong support policy and construction machine demand increase as well linearly.

There were total 8,291 public spots that required heavy machinery in 2107 regarding the material from The Ministry of Public Works. The demand from Construction sector has been replacing Mining sector requirement.

Indonesia construction machinery market size by Industry
![09F35401-ABB5-473B-9A75-CAA6F548922B.png](https://cdn.steemitimages.com/DQmdfimJ1HGQ6uAavc3ReuZXJYZi3uDevuhASNCxJU1w8Bt/09F35401-ABB5-473B-9A75-CAA6F548922B.png)
*Source: Construction Information Center, Unit: 1M USD*

Referring to Indonesia Heavy Machine Manufacturing Association(HINABI), high demand of construction machines doesn't make Indonesia domestic production increased. The root cause of this situation is the low quality and high price of Indonesian products and high amount of imported products from US, Japan and China.
Even some Indonesian products that produced in Indonesia apply many imported parts inside.

Indonesia Construction Machines Manufacturing Status
![D207021C-2FC3-4CCF-B0DB-031BA91EA8DB.png](https://cdn.steemitimages.com/DQmbwkhAZWobh8cPKXAHFMTYFvPYpuEtx9t6gjf71ShVKEa/D207021C-2FC3-4CCF-B0DB-031BA91EA8DB.png)
*Source: HINABI, Unit: EA*

In 2012, Mining sector accounted for 53% of all heavy machinery sales, but it took just 21% in 2016 in the decline of mining industry.
in 2012, construction machinery accounted for 15%. But it increased to 50% in 2016 in the trends of infra structure construction, newly constructed houses and increased construction projects.

Indonesia Heavy Machines Market Share by Application (Year 2012 vs. Year 2016)
![40533F8D-3EF7-48C5-BF0B-06C52ABDD371.png](https://cdn.steemitimages.com/DQmWogg1uxW4v45aRUW7hRKpfcXCWw5eZEgYZ5cuDg33hZm/40533F8D-3EF7-48C5-BF0B-06C52ABDD371.png)
*Source: Indo Analisis, Unit: %*

*Source: KOTRA*
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@jingdol ·
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μ•ˆλ…•ν•˜μ„Έμš” harryjiλ‹˜

랜덀 λ³΄νŒ… 당첨 λ˜μ…¨μ–΄μš”!!

λ³΄νŒ…ν•˜κ³  κ°ˆκ»˜μš”~

쒋은 ν•˜λ£¨ λ³΄λ‚΄μ„Έμš”!!

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