Indonesia Construction Equipment Industry Report 2026-2031: Caterpillar, Komatsu, Kobelco, Volvo CE, SANY, and Hitachi Lead Through a Diverse Set of Equipment
Dublin, April 08, 2026 (GLOBE NEWSWIRE) -- The "Indonesia Construction Equipment Market Research Report 2026-2031" report has been added to ResearchAndMarkets.com's offering.
The Indonesia Construction Equipment Market was sized at 21,694 Units in 2025, and is projected to reach 31,920 Units by 2031, rising at a CAGR of 6.65%.
Indonesia continues to prioritize large-scale national infrastructure development, with particular emphasis on major construction projects, transportation networks, and the development of the new capital city, Ibu Kota Nusantara (IKN). Construction activity in Nusantara is expected to extend through 2026 and involves substantial earthmoving works, road construction, and supporting facilities, all of which drive demand for excavators.
Caterpillar, Komatsu, Kobelco, Volvo CE, SANY, and Hitachi Construction Machinery are the front-runners in the country's construction equipment market. These companies have strong market share and offer a diverse set of equipment in the Indonesian market.
Earthmoving equipment accounted for the largest market share of the Indonesia construction equipment market in 2025. Excavators in the earthmoving segment accounted for the largest share in 2025. SANY is a major participant in the Indonesian excavator segment, with an estimated market share of 20%-22%. Since entering the Indonesian market in 2008, the company has delivered more than 43,000 machines, including approximately 26,000 excavators in active operation as of September 2025, highlighting its strong installed base and expanding footprint.
On the other hand, demand for material handling equipment is also growing due to the country's reliance on imports, which further drives the need for forklifts across warehouses and logistics centres. Demand for cranes in Indonesia in 2026 is expected to rise, driven by port modernization initiatives, strong construction activity, and growth in manufacturing and industrial production.
The road construction equipment segment is estimated to reach $70 million by value by 2031, growing at a CAGR of 7.36%. Road roller sales are high in Indonesia in response to the rising renovation and expansion of transport networks. The Indonesian government has set a goal to complete about 6,900 bridges by 2026, with a strong focus on improving connectivity in remote and underserved regions where river crossings remain a significant barrier to daily mobility and access to services such as education, markets, and healthcare.
Furthermore, in 2026, the Ministry of Public Works emphasized a strong pipeline of infrastructure activity transitioning from 2025 into large-scale implementation. Of the 260 rural road projects planned under the program, 45 were completed in 2025, while the remaining 215 projects are scheduled for execution in 2026.
In 2025, the construction segment accounted for over 40% of the construction equipment usage market in Indonesia's construction industry. The segment is projected to expand at a CAGR of 6.73%. Government spending continues to play a central role in sustaining this expansion in 2025. The Ministry of Public Works and Public Housing (PUPR) was initially allocated a budget ceiling of approximately $4.5 billion for 2025, which was subsequently increased to around $7 billion following deliberations on the Draft State Budget (RAPBN).
Indonesia is a global leader in the production of several key commodities, most notably coal, nickel, copper, and gold. Coal remains the most significant industry by volume and employment. Nickel is a dominant factor in strategic policy due to its role in the stainless steel and electric vehicle supply chains. Meanwhile, copper and gold underpin Indonesia's reputation for large-scale, high-complexity underground mining.
Nickel has become Indonesia's most strategically important mineral. The country hosts some of the world's largest laterite nickel deposits, primarily in Sulawesi and the Maluku Islands. Nickel mining is predominantly open-pit, extracting lateritic ore near the surface.
INDONESIA CONSTRUCTION EQUIPMENT MARKET DRIVERS
Booming Construction Sector Growth
Growing Investments in the Mining Sector
INDONESIA CONSTRUCTION EQUIPMENT MARKET TRENDS
Rising Focus on Electric Construction Equipment
Indonesia's Data Center Expansion
INDUSTRY RESTRAINTS:
Rising Construction Costs and Their Impact on Equipment Investment In Indonesia
Volatile Exchange Rate Impacting the Demand for Construction Equipment
INDONESIA CONSTRUCTION EQUIPMENT MARKET VENDOR LANDSCAPE
Sumitomo, Tadano, Kato Works, Shantui, Dynapac, Manitou, Liebherr, Toyota Material Handling and Yanmar are niche market players in the market. These companies offer low product diversification and have a strong presence in the Indonesian market.
Bobcat, SDLG, Zoomlion, JCB, LiuGong, XCMG, DEVELON, CNH Industrial, and HD Hyundai Construction Equipment are emerging in the market. These companies are introducing new technologically advanced products to challenge the market share of market leaders in the Indonesian market.
Terex, SAKAI, and Bomag have low product diversification; these companies are lagging in adopting new technologies used in construction equipment.
In January 2026, to support the acceleration of infrastructure development in Indonesia, SDLG, through PT SDLG Indonesia Machinery, introduced a medium- sized hydraulic excavator, the E6215H Long Arm with an arm length of 15 meters and a bucket capacity of 0.4 cubic meters.
PT Indotruck Utama officially introduced the Volvo EC210 excavator to the Indonesian market in 2025, in Jakarta. This model is equipped with Volvo Caretrack's telematics remote, which provides flexibility and ease of access to machine status, including positioning, fuel consumption data, and other machine data. To ensure operational safety, this tool is equipped with a rearview camera located alongside the rear LED work light.
As a major player in the heavy equipment and material handling solutions industry, in 2025, PT Traktor Nusantara (Traknus), Toyota Forklifts authorized distributor in Indonesia, introduced the Toyota Forklift Fuel Cell 70-8FBE18, the first hydrogen-fueled forklift in Indonesia, as part of a real step to support the energy transition towards Net Zero Emission 2060. The distributor also introduced JLG's aerial platforms: ES4046, Pecolift, and E450AJ for work at heights.
Key Vendors
Other Prominent Vendors
Distributor Profiles
Segmentation by Type
Earthmoving Equipment
Road Construction Equipment
Material Handling Equipment
Other Construction Equipment
Segmentation by End Users
Key Attributes:
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