JAKARTA. Sales of Komatsu heavy equipment recorded by PT United Tractors Tbk (UNTR) up to July (7M) 2024 were recorded at 2,515 units, down 29% compared to 7M 2023 which reached 3,551 units.

UNTR management assesses that the decline was caused by low demand for heavy equipment from a number of sectors, from mining to construction. Nevertheless, the company still controls a fairly large market share of heavy equipment in Indonesia.

"We can maintain our market share, so that it can still be at the level of 28-20%," said Loudy Irwanto Ellias, Director of UNTR, in a public presentation held today.

Apart from that, Irwanto also admitted that competition in the heavy equipment market in Indonesia is getting bigger, especially with the onslaught of heavy equipment products made in China which are sold at low prices. "Actually [Chinese products] are a very big threat to us," said Irwanto.

Nevertheless, said Irwanto, UNTR has faced these challenges with a number of strategies. Starting from a dual-product line strategy, to providing added value for customers.

With a dual-product line strategy developed together with principals, UNTR can provide more economical heavy equipment products for light to medium jobs. Meanwhile, the added value offered to customers ranges from fleet monitoring facilities to spare parts that can be directly installed by customers independently to streamline maintenance.

According to idnfinancials.com data, UNTR posted revenue of IDR 64.51 trillion in the first semester (1H) 2024. Meanwhile, its net profit was recorded at IDR 9.5 trillion. (KR/LM)