Japanese Construction Machinery Firm Kanamoto to Make $2m Initial Invesment in Indonesia
JANUARY 26, 2015
Jakarta. Japan’s construction machinery firm Kanamoto is set to make an initial investment of up to $2 million in Indonesia this year, in its foray in Southeast Asia’s largest economy.
The Sapporo-based company, which rents and sells construction machinery, has taken up Prabesco Disatama — a heavy machinery distributor — as a local partner to form a joint venture in Indonesia.
“We’re collaborating to fill the demand for the rental market in Indonesia. We’re going to operate on a small scale first,” said Saripin Taidy, the president director of Probesco Disatama, in a statement over the weekend.
One of the projects that the joint venture is eying is the mass rapid transit (MRT) project in Jakarta, according to Saripin.
Saripin noted that the joint venture will increase investment gradually according to demand for construction machinery in the country, since the market for heavy machinery rentals can be unpredictable.
Heavy machinery firms such as Prabesco Disatama have been looking to the country’s construction and infrastructure sectors to expand their revenue amid weak growth in the country’s mining sector.
According to Saripin, Indonesia has the biggest potential for construction in the region with a forecast that the country will make up 60 percent of the region’s construction market this year.