Booming! Heavy Equipment Worth Rp15 Trillion at IIME 2025, Now’s the Time for Contractors to Understand CPM Insurance

Liga Asuransi – Booming heavy equipment contracts worth Rp. 15 trillion recorded by Chinese manufacturers at the eventIndonesia International Mining Expo (IIME) 2025This marks the heightened vibrancy of Indonesia’s mining and construction sectors. This substantial transaction value demonstrates the enormous potential of the heavy equipment market and also serves as a reminder of the importance of investment protection amid the risks of damage, accidents, and loss of valuable assets.

One of the best protection solutions is Contractors Plant and Machinery (CPM) insurance, specifically designed to protect heavy equipment from various operational risks. In this article, you will understand:

• Why is the heavy equipment boom synonymous with big risks?
• The importance of CPM in maintaining contractor financial stability
• Examples of real risks in the field
• How to choose the right protection for assets worth billions of rupiah

This is where L&G Insurance Broker’s role becomes crucial. As an experienced insurance broker in the mining and construction sectors, L&G helps contractors select the best CPM products, provides access to a variety of reputable insurance companies, and assists with the claims process through to completion.

Don’t let your heavy equipment investment be at risk without protection!
Get a FREE consultation with our team of experts L&G Insurance Broker through:
WhatsApp: 08118507773
Email: halo@lngrisk.co.id 

Why Should Contractors Be Wary?

The Rp15 trillion contract secured by a Chinese heavy equipment manufacturer at IIME 2025 demonstrates the growing number of heavy equipment units operating in Indonesia. For contractors, this presents a golden opportunity to increase project productivity. However, great opportunities always come with commensurate risks.

The cost of a single piece of heavy equipment, such as an excavator or crane, can reach tens of billions of rupiah. Minor damage may be manageable, but what if a major accident renders the equipment unusable? Or a theft that destroys valuable assets overnight? Without proper protection, these losses can be devastating to a company’s finances.

Furthermore, many contractors still view heavy equipment as a secure, long-term asset. However, operational risks in the field—from extreme weather, human error, to unstable mine conditions—can threaten the equipment’s useful life. This necessitates contractors to be more proactive in protecting their investments.

This is where understanding and preparing risk mitigation strategies becomes crucial. One way is to utilize Contractors Plant and Machinery (CPM) insurance coverage as a financial shield against potential significant losses.

Real Risks to Heavy Equipment in Mining & Construction Projects

The Rp15 trillion contract at IIME 2025 clearly demonstrates investors’ strong confidence in Indonesia’s heavy equipment industry. However, it’s important to remember: the larger the investment, the greater the risks.

Some real risks that often occur with heavy equipment in mining and construction projects:

1. Operational Accident
   Heavy equipment such as excavators, cranes, and dump trucks often operate in extreme terrain. Slipping, overturning, or crashing can cause severe damage and cost billions of rupiah in repairs.
2. Fire and Explosion
   A hydraulic system, fuel system, or electrical short circuit can trigger a fire. In an instant, a unit worth tens of billions of rupiah can go up in flames.
3. Theft and Loss
   Don’t take it lightly. Heavy equipment is a high-value asset that is a target for crime, both theft of the unit and its vital components.
4. Natural disasters
   Landslides, floods, and even earthquakes can damage heavy equipment on project sites. The losses are often unexpected and difficult for contractors to cover alone.

Imagine if all these risks occurred to heavy equipment without insurance coverage. Losses could reach billions, jeopardizing the project’s sustainability.

This is where L&G Insurance Broker plays a crucial role. With extensive experience in the mining and construction sectors, L&G helps contractors obtain the right CPM coverage, shifting significant risks to the insurance company.

What is CPM (Contractors Plant & Machinery) Insurance?

After understanding the various risks that lurk, now is the time to discuss the right protection solution: Contractors Plant & Machinery (CPM) Insurance.

CPM insurance is a specialized product designed to protect heavy equipment and project machinery from various risks of damage or loss, both while in operation and when idle. Unlike standard vehicle insurance, which only covers cars or trucks, CPM focuses on providing comprehensive protection for equipment with high investment value.

Some of the coverage in CPM Insurance includes:

• Damage due to work accidents, such as rolling over, overturning, or collision.
• Damage due to fire or explosion at the project site.
• Loss due to theft, either of the entire unit or important components.
• Damage due to natural disasters, such as floods, landslides, or earthquakes.
• Damage during the transportation process, when the equipment is moved from one project location to another.

Types of heavy equipment that can be insured with CPM include:

• Excavator
• Bulldozer
• Crane
• Dump Truck
• Wheel Loader
• Generators and other project machines

With this kind of protection, contractors don’t need to worry about directly covering billions of rupiah in losses if an unforeseen event occurs. CPM ensures that significant risks are transferred to the insurance company, allowing the company to maintain financial stability and project continuity.

Benefits of CPM Insurance for Contractors

For contractors, heavy equipment is more than just a physical asset; it is the heart of project operations. Every hour that heavy equipment is down can delay projects and result in compounded losses. By having Contractors Plant & Machinery (CPM) insurance, contractors gain various strategic benefits, including:

1. Protecting the Value of Asset Investments

Heavy equipment worth billions of rupiah represents a significant investment. CPM ensures that this investment remains protected from the risk of damage or loss.

2. Maintaining the Company’s Financial Stability

Without insurance, contractors would be liable for the full cost of any accident or damage. With CPM, this financial risk is transferred to the insurance company, ensuring a stable cash flow.

3. Meet Project or Tender Requirements

Many large construction projects, especially those involving governments or foreign investors, require contractors to have insurance coverage. CPM is a crucial form of compliance for contractors to win tenders.

4. Gives a sense of security and trust

With CPM, contractors can work more calmly, while clients, project owners, and investors also have more confidence that project assets are well protected.

5. Improve Operational Efficiency

In the event of damage or an accident, the insurance claims process can help contractors obtain compensation funds more quickly. This allows companies to promptly repair or replace equipment, preventing undue project delays.

When Should Contractors Start Having CPM Insurance?

Many contractors only realize the importance of insurance after a disaster has already occurred. However, the sooner protection is in place, the safer their investment. Here are some crucial moments when contractors should immediately obtain CPM Insurance:

1. When Buying or Renting New Heavy Equipment

As soon as heavy equipment worth billions of rupiah enters a company garage or project site, the risks begin to arise. CPM protection should be activated immediately to prevent contractors from being exposed to risk from day one.

2. When Participating in Large-Scale Projects

Infrastructure, mining, or construction projects worth trillions of rupiah typically carry a high level of risk. A CPM serves not only as a safeguard but also as a form of compliance with project standards.

3. When Facing Extreme Field Conditions

Projects located in areas prone to flooding, landslides, or unstable natural conditions increase the urgency of CPM protection.

4. When the Contract/Tender Requires Insurance

Many work contracts, especially those for government and foreign investor projects, require insurance for heavy equipment. CPM is a mandatory requirement for contractors to participate.

5. When the Company Starts to Expand

As contractors scale their businesses and add to their heavy equipment fleets, CPM helps ensure all new assets are protected from increased risks.

In short, the sooner a CPM is in place, the safer and more professional the contractor’s operations will be. Waiting until a loss occurs will only increase costs and damage the company’s reputation.

The Role of L&G Insurance Brokers in Heavy Equipment Protection

Many contractors are confused about choosing the right CPM product. Premiums can be expensive, policy clauses are complex, and the claims process is often time-consuming. This is where L&G Insurance Broker comes in to help.

With decades of experience handling protection in the construction, mining and heavy equipment sectors, L&G provides:

• Specific needs consultation: Every project has different risks, from location to equipment type to investment value. L&G helps analyze these needs.
• Access to a wide range of leading insurance companies: L&G works with a wide range of insurance partners, allowing contractors to obtain CPM policies with competitive premiums and optimal protection.
• Claims assistance: when a risk actually occurs, L&G ensures the claims process runs smoothly so that contractors receive compensation immediately.
• Comprehensive solution: not only CPM, but also other types of insurance relevant to mining and construction projects.

With the support of L&G Insurance Broker, contractors not only get protection, but also a trusted partner in heavy equipment risk management.

Conclusion

The Rp15 trillion heavy equipment contract at IIME 2025 demonstrates that Indonesia’s mining and construction industry is on a path of significant acceleration. However, every investment in heavy equipment also carries significant risks.

Asuransi Contractors Plant and Machinery (CPM) L&G Insurance Broker offers a financial protection solution to protect contractors from the risk of losses in the event of accidents, damage, or loss of heavy equipment. With the support of L&G Insurance Broker, you have a trusted partner ready to provide consultation, the best protection solutions, and claims assistance.

Come on, protect your heavy equipment investment now!

FREE consultation with a team of experts L&G Insurance Broker through:

WhatsApp: 08118507773

Email: halo@lngrisk.co.id