Komatsu equipment sales to rise

Rendi A. Witular, Bogor

Publicly listed PT Komatsu Indonesia, a unit of Japanese heavy-equipment producer Komatsu Ltd, forecast sales of its construction equipment to soar by at least 78 percent this year on higher demand from mining, logging and agricultural companies.

Komatsu spokesperson Petra Ho said the company had expected sales of construction equipment to reach at least 1,400 units this year compared to 786 units last year.

"Expansion in mining, agriculture and logging have triggered more demand for our construction equipment as they increase output amid higher prices of their commodities," said Petra during a media gathering recently.

"Our sales for the equipment will probably rise by at least 78 percent this year," she said.

Petra said the company projected mining companies to account for 51 percent of the total construction equipment demand, followed by logging companies with 22 percent, agricultural companies with 10 percent and construction companies with 17 percent.

Total domestic demand for construction equipment this year was expected to reach 4,180 units, with Komatsu expected to account for 39.8 percent of the market share, followed by Caterpillar and Hitachi with 29.1 percent and 15.6 percent respectively, said Petra.

Komatsu has also projected sales of its components to rise by 10.5 percent to 11,000 tons this year from 9,950 tons last year.

The company has also estimated its total sales this year to increase by at least 72 percent to US$160 million from $93 million last year, with profits from operation is also expected to rise by 100 percent to about $20 million from $10 million.

Japan's Komatsu controls 68.42 percent of Komatsu Indonesia, while the investing public holds 19.5 percent, with the remaining 27 percent is owned by several institutional investors.

The company is likely also to benefit from higher demand in the construction business next year after a new government takes office and public works are expected to proliferate.