Volvo Construction Equipment has strengthened its market position in Indonesia by naming PT Indotruck Utama as its second authorized dealer in the fast-growing market. Operating in Indonesia since 1988, ITU will work with PT Intraco Penta Tbk, Volvo CE’s Indonesian dealer for the past 29 years.
The appointment is part of Volvo CE’s plan to expand its presence in Indonesia while taking advantage of Indonesia’s current economic growth, where gross domestic product expanded by 2.9 percent over the previous quarter. The World Bank has forecasted 6.2 percent overall economic growth in the country this year.
The two dealers will divide the market, with ITU handling Sumatra, Java, Nusa Tenggara and Papua, and INTA covering Kalimantan, Sulawesi and Maluku.
“With the phenomenal market growth occurring in Indonesia right now, we believe the time is right to expand our service across the country,” said Derrick Sim, president director of PT Volvo Indonesia. “We have had a mutually beneficial relationship with Itraco Penta for almost 30 years and expect that to continue. We also expect the same strong collaboration with Indotruck Utama as our newly authorized dealer in Indonesia.”
Executives from the two dealerships were equally positive about the new arrangement.