PT Mandiri licensed as sole agent

JAKARTA (JP): A British manufacturer of construction and agricultural equipment, JCB, licensed a Mandiri Group subsidiary, PT Mandiri Tractor Utama, yesterday as its sole agent here.

"We have been operating as the sole agent of JCB here since January. But today we officially signed a deal with JCB to become its only distributor in Indonesia," said Herman Kasih, the marketing director of Mandiri Traktor Utama.

The company will sell JCB's backhoe loaders, skid steers, wheelloaders, telescopic handlers and rough terrain forklifts, Herman said after the agreement yesterday.

He said his company was also the sole agent for Vibromax of Germany and Pettibone of the United States. The company intends to sell Vibromax's hand compactors and combination rollers and Pettibone's carry lifts and truck cranes.

He said backhoe loaders, medium-size and multipurpose equipment for construction, agriculture and mining would sell well here. The company's products range in price from US$60,000 to $100,000.

The company hopes to sell to 25 percent of the heavy equipment market next year, he said, because many foreign construction and agriculture consulting firms operate in Indonesia. He said these firms, many from Malaysia, the Philippines and Britain, were familiar with JCB products.

"We've managed to sell more than 30 backhoe loaders. We expect we will sell about 50 of them this year," Herman said, adding that 400 backhoes a year are sold here.

He said PT Mandiri Tractor Utama had spent about Rp 10 billion ($4.3 million) setting itself up as a sole agent for the foreign companies.

According to Herman, PT Mandiri Tractor Utama will become one of the top five sellers of heavy equipment in Indonesia by late next year. The others are PT United Tractor, PT Trakindo, PT Mekasindo and PT Fajar Mas Murni.

When asked who owned the Mandiri Group, he said: "Pak Cosmas (former minister of manpower Cosmas Batubara), some military personnel and private businessmen. But I'm sorry I can't tell you the details because we're not a public company." (bnt)