KONTAN.CO.ID - JAKARTA. Finance company, PT Mandiri Tunas Finance (MTF) recorded heavy equipment financing or heavy equipment (HE) in November 2024 reaching IDR 3 trillion. This heavy equipment achievement has increased by 100% when compared to the same period in the previous year.

MTF Director William Francis explained that the increase in heavy equipment financing distribution was driven by the mining sector, especially coal. Where, many mining entrepreneurs are investing this year, both for the purchase of new units or unit rejuvenation in order to maintain and increase production.

"And the distribution of heavy equipment financing at MTF throughout 2024 continues to increase every month with an average of IDR 250 billion per month," William told Kontan, Wednesday (4/12).

Furthermore, William said that the company's heavy equipment financing contributed 8.8% of the total financing distribution.

Meanwhile, the industrial sectors that contribute to the company's heavy equipment financing are the coal sector, mining sector, and construction sector.

"Coal is one of the contributors to heavy equipment financing due to the need for rejuvenation of coal supporting equipment from existing MTF debtors," he added.

In addition, William said that the development of heavy equipment financing at MTF this year was quite significant, driven by the entry of heavy equipment suppliers from China with attractive offers to mining entrepreneurs.

Moreover, he assessed that the food self-sufficiency program targeted by the government in 2027 would most likely encourage heavy equipment financing because it has the potential to increase the purchase of heavy equipment that will be needed for various activities such as land clearing, making irrigation channels, to building access roads to transport agricultural products.

Not only that, he said that Donald Trump's policy of supporting fossil energy would also have an impact on commodities such as increasing demand for coal and stability of oil prices.

"As one of the largest coal exporters in the world, Indonesia benefits from the increasing demand for coal from the international market, including the United States," he said.

Meanwhile, he said that the challenges in distributing heavy equipment financing are the many new heavy equipment brands on the market that offer competitive prices, but in terms of quality and lifetime, they cannot match the established heavy equipment brands.

"For that reason, MTF is implementing a strategy so that the performance of heavy equipment financing distribution is maintained in 2025, one of which is to continue to support the distribution of heavy equipment financing facilities while still paying attention to the principle of prudent financing," he said.