Doosan Infracore partners with BBI to enter IndonesiaDoosan Infracore is partnering with Indonesia’s state-run engine producer PT Boma Bisma Indra (BBI) to enter Southeast Asian engine markets.
Under the deal signed Wednesday, the Korean construction equipment maker will cooperate in the production and sales of engines in the region for the next 13 years. BBI has a local facility to produce engines for ships, construction equipment, agricultural machinery and power generators. The Doosan affiliate will offer technologies and parts to produce engines.
The Korean company said the partnership will help it tackle the Indonesian market, the largest engine market in Southeast Asia.
The market is expected to grow by an average 5 percent annually from 55,000 units sold in 2018 to 71,000 units by 2025, according to Doosan.
The company is also hoping to use Indonesia as a stepping stone to enter other Southeast Asian engine markets.
Doosan Infracore and BBI will jointly participate in marine industry exhibition Inamarine, held in Jakarta, Indonesia on Aug. 28 to promote their partnership in mass producing engines and to attract customers.
The two companies had inked a memorandum of understanding last year as part of the Indonesian government’s project to localize engine production. Wednesday’s deal is a follow-up to the earlier partnership.
By Kim Jee-hee