Aiming for 1,700 Units of Heavy Equipment Sales, Here’s the Challenge of United Tractors in 2021

Jakarta –Entering 2021, PTUnited TractorsTbk.(UNTR) targets sales of up to 1,700 units of heavy equipment.

However,United TractorsCorporate SecretarySara K. Loebis admitted that there are several challenges that must be faced in order to achieve this target, one of which is the effect of commodity prices.

“It feels like the challenges are still the same as the previous year,mainly theinfluence of commodity prices,” he said, written on Saturday (9/1/2021).

Seeing this, the Astra Group entities in the mining and heavy equipment business have made adjustments, especially during the unfinished COVID-19 pandemic.

“For a pandemic, there have been adjustments to the work process across sectors, so it is starting to gradually move towards business as usual,” he said.

In addition,United Tractorswill also look at market developments, particularly in the mining sector.As of November 2020, sales of Komatsu heavy equipment were only 1,481 units.

Of the sales, the largest contribution came from the mining sector, reaching 36 percent, followed by the construction sector at 34 percent.Furthermore, there is the forestry sector because it managed to contribute 19 percent, and the agricultural sector 11 percent.

Previously, in 2021, PT United Tractors Tbk (UNTR) was ready to disburse capital expenditures or capital expenditures (capex) of up to USD 290 million or around IDR 4.07 trillion.This figure is increasing compared to 2020.

“The capex for 2021 is around USD 290 million. For 2020, it was around USD 90 million,” United Tractors Corporate Secretary Sara K. Loebis told, Friday, January 8, 2021.

Sara said, the capex will be allocated for the mining and gold mining sectors.The rest will be used for other business lines.

“All funds come from internal cash. 50 percent for mining contractors, 40 percent for gold mining, the rest for regular maintenance capex in other business lines,” he said.

When asked about this year’s heavy equipment sales target, the company said it was ready to sell 1,700 units.This target is higher than the previous year.Throughout 2020, the sales target for Komatsu heavy equipment is predicted to reach 1,300 to 1,400 units.