News & Media

Hyundai Construction Equipment and Hyundai Doosan Infracore Chooses Indonesia as its Base for the Asian Market

- Hyundai Construction Equipment·Hyundai Doosan Infracore to establish Parts Distribution Center (PDC) and business entity in Jakarta, Indonesia
- Will expand supply chain and launch financial products to lead the market
- “Asia will become a new arena of competition with its abundant resources and population… Will gain competence through technology and quality”

2023. 2. 15
Image of Hyundai Doosan Infracore’s 80T excavator exported to Indonesia

Hyundai Genuine, the intermediary holdings company of HD Hyundai’s construction equipment business has selected Indonesia as it base to target the Asian market.

Hyundai Construction Equipment announced on Wednesday, Feb 15, that it has recently completed and officially started operations of its Parts Distribution Center (PDC) in Jakarta, Indonesia.

PDC is a logistics hub that secures and supplies parts for construction equipment such as excavators and wheel loaders. Other Hyundai Construction Equipment PDCs are currently located in its key sales regions including US, China, Belgium, the United Arab Emirates, and Brazil.

The PDC located in Jakarta will be Hyundai Construction Equipment’s ninth PDC, responsible for over 9,000 parts. With the new PDC, the time consumed to procure parts will reduce substantially from five to two days. The delivery period for regular parts orders will also expand from once to twice a month, enhancing convenience for customers.

The company will also be providing more financial support to expand local sales. Hyundai Construction Equipment established a partnership with KB Capital last January and released an installment finance product in Indonesia with low interest rates for those purchasing construction equipment.

Hyundai Doosan Infracore is also planning to build a sales entity in Jakarta late this month to create a sales network that will help target local markets. Along with building its own PDC in May to enhance its parts procurement capabilities, the company plans to create a collaborative equipment parts system with Hyundai Construction Equipment for improved customer satisfaction and brand value. Hyundai Doosan Infracore also plans to participate in the international mining equipment exhibition, Mining Indonesia, which will be held in September, to showcase its new brand ‘DEVELON,’

The reason HD Hyundai’s construction equipment business is putting this much effort into the region is due to the market value Indonesia possesses. The Indonesian market is a large market in Asia, selling an average of more than 9,000 units per year for twelve consecutive years from 2010 to 2022. It is also expected to sell around 15,000 machines during the upcoming five years.

As a fact, Hyundai Construction Equipment is continuing its growth momentum in the Indonesia with a revenue of KRW 76.2 billion in 2022, which is a 54% increase YoY, while Hyundai Doosan Infracore also recorded a revenue of KRW 102 billion, reaching its highest revenue since entering the Indonesian market.

A representative of Hyundai Genuine mentioned that “Asia will become a new arena of competition for construction equipment businesses with its abundant resources and population,” adding, “We plan to become a frontrunner in Indonesia with HD Hyundai’s proprietary technology and quality products as this region will be a base when targeting the Asian market.” <EOD>