Hyundai Construction Equipment and Hyundai Doosan Infracore Establish Parts Supply Center in Jakarta

Using Indonesia as an Asian Market Outpost
Expanding Logistics Supply Chains and Launching Financial Products

[Asia Economy Reporter Han Yeju] Hyundai Genuine, the intermediate holding company of HD Hyundai's construction machinery division, is focusing on developing Indonesia as a regional hub to target the Asian market.

Hyundai Construction Equipment recently announced on the 15th that it has established a Parts Distribution Center (PDC) in Jakarta, Indonesia, and officially started operations. The PDC is a logistics hub that secures and promptly supplies parts for construction machinery such as excavators and wheel loaders. It is currently operated mainly in key sales regions of Hyundai Construction Equipment, including the United States, China, Belgium, the United Arab Emirates, and Brazil.

Photo of a 50-ton excavator equipment exported by Hyundai Construction Equipment to Indonesia.
[Photo by Hyundai Construction Equipment]

The Indonesia PDC, Hyundai Construction Equipment's ninth overseas PDC, handles about 9,000 types of parts, reducing parts procurement time from the existing 5 days to 2 days. The delivery cycle for regular parts orders will also expand from once a month to twice a month.

Financial support to expand local sales has also been strengthened. In January, Hyundai Construction Equipment formed a strategic business partnership with KB Capital and launched a low-interest installment financing product available for construction machinery purchases in the Indonesian market.

Hyundai Doosan Infracore plans to establish a sales corporation in Jakarta by the end of this month and begin building a sales network to penetrate the local market. In May, it will establish a PDC to improve its own parts procurement capabilities and build a parts supply cooperation system with Hyundai Construction Equipment to enhance customer satisfaction and brand value. In September, it also plans to participate in 'Mining Indonesia,' an event attended by major local construction machinery and mining companies, to directly showcase Hyundai Doosan Infracore's new brand 'DEVELON.'

The reason HD Hyundai's construction machinery division is focusing on this region is due to Indonesia's market potential. Indonesia is a huge market where more than 9,000 construction machines have been sold annually on average over 12 years from 2010 to 2022, and it is expected that about 15,000 construction machines will be sold annually over the next five years.

In fact, Hyundai Construction Equipment continued its growth trend by recording sales of 76.2 billion KRW in Indonesia last year, a 54% increase compared to the previous year, and Hyundai Doosan Infracore also achieved its highest-ever sales since entering Indonesia with 102 billion KRW in sales last year.

A Hyundai Genuine official said, "Asia, rich in population and resources, is expected to become a new battleground for construction machinery companies in the future," adding, "Indonesia is a forward base that must be secured to target the Asian market, and we plan to preoccupy the market with HD Hyundai's unique technology and quality."

This content was produced with the assistance of AI translation services.