Why Indonesia has huge potential for Bus, Coach and Truck Markets?
The Prospect of Indonesia Bus and Truck Market.
Indonesia has USD 412 billion for infrastructure projects including toll roads, new intercity road (Trans Java, Trans Sumatera, Trans Kalimantan, Trans Sulawesi and Trans Papua), BRT System, railway projects, etc. With the inauguration of the Trans Java and Trans Sumatra toll roads will certainly increase sales of commercial vehicles in coming year.
Indonesia is conducting massive infrastructure development. Indonesia President “Joko Widodo” is planning an unprecedented $70 billion splurge on toll roads to help connect the most strung-out country. The market of bus and truck definitely will increase significantly because more people will choose to use the public transportation as it is supported by adequate road infrastructure.
For safety reasons, the Indonesian government will regulate the age of commercial vehicles where the age of buses is only up to 25 years and tourism buses (coaches) up to 10 years. Indonesia will need over 100,000 new buses to replace the old buses for the next 5 years. Beside that, Great Jakarta’s BRT system will increase the length from 431 km to 2,149 km and thousand of new EV buses.
From now to 2024.
Annual growth of >3% is expected in global truck market, mainly driven by global GDP growth, estimated at 3.3% per year. Procurement of New Coaches – Tourism Sector Booming! Indonesia is aiming to 20 million visitors by the end of 2019. There has 10 new destinations ready now. In order to serve the number of visitors, the travel companies are predict to add 5,000 new coaches until 2019.
The Indonesian Mining Sector is Getting Better and Brighter.
The power projects of 35,000 MW began to be realized, the share of coal in the national energy mix reaches 50.4% from 50.3% initially. Additional capacity of coal-fired power plants is projected at 31.9 Gigawatt (GW) in the next 10 years. Seeing the state electricity company business, coal business is predicted to be growing and brighter in future. The indicators is the sales of truck and heavy equipment in mining sector to increase more than 100% in the first half of 2017.
Indonesia is trying to lure investors for a $450 billion infrastructure drive to boost its economy.
Indonesia will spend over USD 450 bn in infrastructure projects until 2030 including toll roads, new intercity road, railway projects (MRT, LRT, High/Medium Speed Train, Trans Sumatera, Trans Papua, Trans Sulawesi, Trans Kalimantan), new airport, new seaport and terminal, etc. Many toll roads and new intercity roads are ready to operate in 2019.