Heavy Equipment Industry Indonesia Plagued by Low Commodity Prices
Production of heavy equipment in Indonesia fell 23 percent (y/y) to 4,100 units in 2015 due to the weak conditions in the mining and agriculture sectors. Traditionally, most of heavy equipment sales occur in these two sectors. Weak demand caused utilization of the nation's installed production capacity for heavy equipment to fall to 41 percent in 2015 from 51 percent in the preceding year. When fully utilized Indonesia can produce an estimated total of 10,000 units of heavy equipment per year.