Intraco shifts business focus

JAKARTA (JP): Publicly listed heavy equipment and spare parts firm PT Intraco Penta said yesterday it had changed its business focus from selling heavy equipment to selling spare parts and providing maintenance services.

Intraco finance director Petrus Halim said the company made the move because of the declining purchasing power of its customers who could no longer afford buying new heavy equipment.

"Our consumers can only maintain and fix their existing heavy equipment bought from us rather than buying anything new," Petrus said.

The company's sales totaled Rp 36.65 billion (US$2.62 million) in the first quarter of this year, Rp 18.6 billion of which came from sales to the mining sector.

Spare parts sales made up Rp 21.2 billion of total revenue, while heavy equipment sales contributed Rp 15.5 billion and Rp 13.1 billion came from its rental and repair division. (das)