Doosan Infracore has joined forces with PT Boma Bisma Indra (BBI), an Indonesian state-owned engine manufacturer, to secure an overseas engine production base for emerging economies in Southeast Asia, including Indonesia.
Doosan Infracore has announced that an engine production and sales contract was signed between Yoyok Hadi Satriyono, CEO of BBI, and Vice President Joonho Yoo, head of Engine BG, in Surabaya, Indonesia on the 21st of August, 2019, local time.
As part of ‘the Indonesian National Engine Manufacturing Project’ being pushed by the Indonesian government, Doosan Infracore signed an MOU with BBI in 2018 for the production of its diesel engines in Indonesia through a strategic partnership between the two companies. This contract is a follow-up measure for full-scale implementation of their commitment.
In the contract, Doosan Infracore and BBI have agreed to cooperate with each other in developing BBI engines over the next 13 years through Dress-up/SKD (semi knock-down) and CKD (complete knock-down). They also agreed to join forces to access into the Southeast Asian engine market not to mention the Indonesian market.
BBI has already set up a ‘Dress-up/SKD’ plant that can produce up to 16,000 engines per year. BBI will produce a variety of engine products such as marine engines, construction equipment engines, agricultural machinery engines, and power generation engines to meet the demand in major Indonesian markets. BBI is planning to increase its production capacity to as many as 25,000 units per year.
Through the contract execution, Doosan Infracore has secured a strong position necessary to access into Indonesia, the largest Southeast Asian engine market, which is estimated to grow at an average of 5% per year between 2018 and 2025 from 55,000 to 71,000 units per year.
“The BBI plant will serve as our key manufacturing base for Southeast Asia, including Indonesia, with great growth potential,” said Vice President Joonho Yoo, head of Engine BG. “We will enhance our global production system that can meet each market’s specific engine requirements to actively respond to demand for the diverse types of engines around the world.”
On August 28th, 2019, Doosan Infracore and BBI will participate in 'INAMARINE 2019,’ a shipbuilding, offshore, marine equipment, machinery & services exhibition held in Jakarta, Indonesia. Their booths will focus on advertising the joint mass-production of engines in Indonesia and expanding their customer base in the region.