Astra, Komatsu to form leasing firm<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The country's largest automotive company, PT Astra International,
\nplans to set up a joint venture leasing company with Japan's
\nheavy-equipment maker Komatsu Ltd. later this year, according to
\nAstra's top official.<\/p>\n
Astra International president Budhi Setiadharma was quoted by
\ndetik.com as saying on Thursday that the new venture would focus
\non providing financing for the purchase of Komatsu's
\nheavy-equipment products.<\/p>\n
The multi-finance company would allocate some US$20 million
\nfor initial investment, he said.<\/p>\n
Astra, via its publicly listed heavy equipment division PT
\nUnited Tractors, owns a 5 percent stake in PT Komatsu Indonesia,
\nthe local unit of Japan's Komatsu, which has the largest share of
\nthe heavy-equipment market in the country.<\/p>\n
Komatsu Indonesia is expected to enjoy strong sales this year
\namid the strong demand for heavy equipment from mining, logging,
\nand agricultural companies.<\/p>\n
The company's spokesperson said in September that sales were
\nexpected to grow by around 78 percent to at least 1,400 units
\nthis year, compared to 786 units last year.<\/p>\n
Resource-based companies have launched expansion programs to
\ntake advantage of the current surge in the prices of their
\ncommodities. The move is raising demand for heavy equipment.<\/p>\n
Komatsu Indonesia expects mining companies to account for 51
\npercent of the total equipment demand this year, followed by
\nlogging companies with 22 percent, agricultural companies with 10
\npercent, and construction companies with 17 percent.<\/p>\n
Total domestic demand for construction equipment this year was
\nexpected to reach 4,180 units, with Komatsu expected to account
\nfor 39.8 percent of the market share, followed by Caterpillar and
\nHitachi with 29.1 percent and 15.6 percent respectively, said
\nPetra.<\/p>\n
Komatsu is likely also to benefit from higher demand in the
\nconstruction business next year as the country's new government
\nwill boost public works.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-komatsu-to-form-leasing-firm-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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