XCMG has broken ground on a center in Balikpapan, the company’s first overseas facility dedicated to overhauling and remanufacturing mining equipment components.
The planned center combines component repairs, regional parts storage, local technician training and used equipment refurbishment. It will link used-component collection with repairs, replacement parts and field service.
XCMG expects local overhaul work to reduce downtime and costs. The investment expands its after-sales support alongside manufacturing, research and development, and financing operations in Indonesia.
Source: XCMG
PSR Analysis: Indonesia’s equipment demand is affected by government limits on mine production and slower public works. Equipment distributor and mining contractor United Tractors reported a 27% fall in Komatsu sales in the first half of 2026. Sales of large mining machines fell 55%. Its mining contracting business reported declines of 3% in coal production and 10% in overburden removal—the earth moved to expose coal. Mining operations continued, while parts and maintenance revenue edged up from IDR 5.4 trillion to IDR 5.5 trillion, helping support revenue during weak equipment sales.
I visited Mining Indonesia in Jakarta in September and spoke with local businesses. One account described large Chinese dump trucks with around 10,000 operating hours retaining usable bodies and frames while complete engines and transmissions were replaced. This allowed owners to continue using the trucks and defer buying new ones. I also heard of suppliers offering to place spare engines and transmissions at customers’ sites, with payment due only when used. This reduces advanced spending on spares and the wait after a breakdown.
XCMG’s planned center would capture more of this spending through major repairs, component remanufacturing and used equipment refurbishment. Supporting longer machine life can generate repair revenue and maintain customer relationships until replacement purchases are made. However, parts stocks, facilities and technicians carry costs. Prolonged reductions in machine use would also affect repair demand. Returns will depend on attracting enough work from equipment already in service.
Equipment sales and rental company Intraco Penta is also strengthening parts, maintenance and rental operations. Separately, an interview described a crane rental business considering selling its fleet and closing because falling rental rates could no longer cover staffing and other costs. Repairing customers’ machines and owning rental fleets have different business conditions. XCMG’s investment would extend Chinese competition into repair and remanufacturing services long established by Japanese and Western suppliers. Support for continued machine use could become an increasingly important part of keeping customers, alongside the price of new equipment. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia
