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Doosan Infracore Makes a Full-scale Foray into Indonesian Engine Market
Joint Production of Engines in Indonesia
Doosan Infracore Makes a Full-scale Foray into Indonesian Engine Market
  • By Michael Herh
  • August 27, 2018, 12:18
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Doonsan Infracore has signed an LOI with BBI of Indonesia to joinly produce diesel engines in Indonesia. Posing for a photo at the LOI signing ceremony in Surabaya, Indonesia on Aug. 23 are, from left, Rahman Sadikin, CEO of BB; Rudy Setyopurnomo, CEO of Equitek; Yoo Jun-ho, vice president and head of the Engine Business Group at Doosan Infracore; and Bong Hyung-bum, director of the Engine Business Group at Doosan Infracore.

Doosan Infracore announced on August 26 that the company signed a letter of intent (LOI) with leading Indonesian companies to make a full-scale foray into Indonesia, the biggest engine market in Southeast Asia.

On August 23, Doosan Infracore held an LOI signing ceremony on a joint diesel engine production project with Indonesia's state-owned engine producer BBI in Surabaya, Indonesia. This LOI is based on the Indonesian goverment's policy to localize diesel engine production as part of its efforts to foster the manufacturing industry.

"We will be able to build a solid foundation by working with excellent local partners with outstanding capabilities in the project led by the Indonesian government," a Doosan Infracore official said. "The signing of the LOI will be an opportunity to expand sales of various engines such as those for automobiles, industries and vessels in Indonesia where we have been mainly selling engines for generators."

The Indonesian engine market is expected to grow 6% annually on average from 45,000 units in 2018 to 69,000 units in 2025 based on demand for automobile and industrial engines. This is well above 2%, the average growth of the global engine market.