Hence, Intraco Penta set a sales growth target of 25 percent year-on-year (y/y) for 2018. Considering the heavy equipment distributor sold a total of 629 units in full-year 2017, this figure is targeted to rise to 786 heavy equipment units in 2018.

Sales growth realization could actually be stronger than the company's target provided the mining industry continues to improve. Currently, demand for those heavy equipment units that are distributed by Intraco Penta exceeds supply and therefore customers have to wait before being able to receive their heavy equipment unit. For example, those customers who order big trucks with a weight of at least 45 tons have to wait three to four months before the order is completed.

However, the company's 2018 sales growth will most likely not be as strong as sales growth in the preceding year. In 2017 Intraco Penta sold 629 heavy equipment units, up 51.6 percent (y/y) from 415 units in the preceding year. Hence, the company's (unaudited) revenue grew from IDR 782.2 billion (approx. USD $59 million) in 2016 to IDR 1.2 trillion (approx. USD $90 million).

For 2018 Intraco Penta allotted IDR 80 billion (approx. USD $6 million) for capital expenditures. Most of the budget will be used to expand its network of garages and warehouses (for spare parts).

Currently, the company has big warehouses in Samarinda and Balikpapan, both in East Kalimantan. This is a strategic position as many customers originate from mining areas in Kalimantan and Sulawesi. Intraco Penta has 30 distribution and sales points in Indonesia.

Through its unit Intraco Penta Prima Servis, Intraco Penta distributes Volvo and SDLG branded heavy equipment. Meanwhile, through unit Intraco Penta Wahana, it distributes Bobcat, Mahindra, Sinotruk, and Doosan branded units to Indonesian customers.

Besides the heavy equipment market, Intraco Penta has also entered the power generation industry. The company operates a 2 x 55 MW thermal power station in Batam and is currently constructing a 2 x 100 MW thermal power station in Bengkulu (Sumatra). The first unit is scheduled to come into operation in December 2019, the second unit in February 2020.

So far in 2018, shares of Intraco Penta, listed on the Indonesia Stock Exchange, have climbed 7.01 percent to IDR 458 a piece. The company's share performance is highly related to conditions in the mining and agriculture sectors, specifically commodity prices.

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