JAKARTA - PT Hexindo Adiperkasa Tbk (HEXA) is optimistic that the sales of 6-ton excavators and mini excavators will increase at the end of this year. In the first quarter (Q1) of 2023, this issuer recorded revenue of USD 630.49 million, shifting from USD 463.26 million in Q1 2022.

Djonggi TP Gultom, President Director of Hexindo Adiperkasa, said that the demand for heavy equipment still depends on the increase in price of mining commodities, such as gold, nickel, and coals. “That particular sector still dominates the demand for heavy equipment,” he told IDNFinancials earlier today (25/7).

According to Gultom, the demand for heavy equipment, such as excavator and mini excavator is still high, especially in the plantation industry, due to scarce human resources. In order to deal with this situation, they need fully-mechanised excavators. “Thus, people nowadays have begun to opt for fully mechanised construction and plantation activities. Road construction, especially in crowded areas, call for mini excavators, as they move quicker and are less hazardous for people,” he explained.

Furthermore, in Gultom’s opinion, heavy equipment with great tonnage capacity and high cost are more likely to be utilised in mining areas in Kalimantan and Sulawesi. Meanwhile, heavy equipment with less tonnage capacity is more popular in Sumatra and Java, commonly used for forestry or pulp & paper industry.

The supply chain of heavy equipment distribution also affects unit sales. Thus, despite high demands, the realisation is still underperformed. “In Indonesia, it is hard to generate an accurate market prediction; the time is never quite right. When we set it up as predicted, the demand goes over. Once the situation is slowing down, that is the only time when we could ready the stock of the equipment,” Gultom said.

In 2021, the sales of excavators with over 6-ton capacity were 2,226 units, whereas the demand reached 14,334 units. Wheel loader recorded only 23 units sold, compared to the demand that reached 763 units. Similarly, mini excavators reported sales of 300 units and demands of 921 units.

This year, HEXA allocated USD 15 million for its capital expenditure, which will be used for regular maintenance. The source of this capital expenditure budget is its own internal cash. (LK/ZH)