Doosan Infracore executives signing an LOI for the Indonesian National Engine Manufacturing Project with BBI, a state-owned engine manufacturer, and Equitek, a local dealer. (From left) BBI CEO Rahman Sadikin, Equitek CEO Rudy Setyopurnomo, Doosan Infracore Engine BG VP Joonho Yoo, and Doosan Infracore Engine BG Sales & PS M/D Hyungbeom Baek.
On 26 August 2018, Doosan Infracore announced that it had signed an Letter of Intent with two highly influential local companies in Indonesia, the largest engine market in Southeast Asia, in a bid to make deep inroads into the market.
Doosan Infracore signed a three-way LOI in Surabaya, Indonesia on 23 August 2018 with BBI (PT Boma Bisma Indra), a state-owned engine manufacturer, and Equitek (PT Equiti Manajeman Teknologi), a local dealer, to jointly carry out the ‘Indonesian National Engine Manufacturing Project’.
The project in question is part of the Indonesian government’s policy to promote the localization of diesel engines in order to foster the country’s manufacturing industry. The LOI has laid the groundwork for Doosan Infracore’s advance into the entire Indonesian engine market ranging from parts supply to sales to production.
"We have established a solid foundation by joining hands with local partners armed with outstanding capabilities to execute a project that is being promoted by the Indonesian government,” said an official of Doosan Infracore. “Previously, we primarily sold engines for power generation in the Indonesian market. Now, we will have opportunities to sell engines for automobiles, industrial machines, and ships there as well,” he added.
Largely driven by the increasing demand for automobiles and industrial machines, the Indonesian engine market is forecast to grow at an annual average rate of around 6%, rising from 45,000 units in 2018 to 69,000 units in 2025, greatly exceeding the 2% average growth rate of the global engine market during the same period.
"We have succeeded in securing the powerful momentum needed to expand into the entire Southeast Asian engine market, which is showing great growth potential, through this LOI for an Indonesian national project, on top of our successful entry into the Vietnamese automobile engine market in 2017,” declared Vice-President Joonho Yoo, head of Doosan Infracore’s Engine BG. “We will continue to strengthen our global position as a power solutions provider that meets the full range of engine demand right across the globe.”