Domestic infrastructure investment slows down, where is the construction machinery road?

China's railway infrastructure is still in a difficult recovery period. According to reports, railway infrastructure investment in January this year fell to the lowest point since 2009. On the 15th, the official website of the Ministry of Railways announced the completion of major national railway indicators in January 2012. In January, the railway infrastructure investment was only 8.7 billion yuan, a year-on-year decrease of 76%; fixed asset investment was 12.2 billion yuan, a year-on-year decrease of 69.6%.

Railway investment has shrunk to a considerable extent, and other infrastructure investment has also shown deceleration in varying degrees. The downturn in infrastructure investment has largely affected the sales of construction machinery.

Domestic construction machinery is sluggish. Can it be developed abroad? Such as: Indonesia.

As Indonesia’s domestic economy continues to recover and grow rapidly, Indonesia’s efforts to improve infrastructure are increasing. The Indonesian government has stimulated domestic and foreign investment in Indonesia by formulating a series of preferential policies, lowering corporate income tax, and improving the domestic investment environment, especially overhauling public facilities. This is undoubtedly a good news for Chinese companies.

It is understood that Indonesia's heavy equipment market is dominated by four companies: Komatsu, Caterpillar, Hitachi and Kobelco. However, it is still a key issue for Chinese domestic brands to establish a foothold in Indonesia. How to persuade local equipment suppliers and customers to change their inherent ideas is a long way to go.