The Effect of Heavy Equipment Maintenance Budget on Operational Performance at PT XYZ Indonesia

Abstract

Heavy equipment maintenance activities require significant resource allocation, including aspects of technicians, spare parts availability, supporting equipment, and time management. All of these resources are integrated into a fundamental aspect, namely the maintenance budget (X). The maintenance budget is a planned allocation of funds to facilitate asset maintenance and repair activities, including heavy equipment. Budget-supported maintenance is collectively essential in achieving optimal maintenance. This optimal maintenance is used to maintain heavy equipment performance and directly contributes to reducing downtime or unplanned operational downtime. A weak budget or suboptimal management can negatively impact maintenance schedules, repair quality, and spare parts availability, which directly impacts heavy equipment readiness and performance in the field (Priatna, 2025). Sukamdani (2018) emphasized that cost management in maintenance has a positive impact or is a key factor in achieving operational efficiency and effectiveness, which ultimately impacts overall operational performance. PT XYZ Indonesia, as an entity in the mining industry, is highly dependent on heavy equipment to ensure the smooth operation of exploration and exploitation activities. Optimizing heavy equipment operational performance is a top priority to achieve production targets and maintain the company's competitiveness. However, the company's internal operational data shows a significant gap between the planned maintenance budget and actual costs. Based on PT XYZ Indonesia's Cost Control report for the 2024–2025 period, the phenomenon of mismatch between planned and realized budgets occurs consistently. In 2024, the total budget for heavy equipment maintenance was set at USD 851,099, but the actual maintenance costs reached USD 2,167,360, exceeding the budget by 154.7%. A similar situation continued in 2025, where the maintenance budget for the January–November period was set at USD 2,487,147, but the actual costs reached USD 3,548,401, still exceeding the budget by 42.7% (Cost Control PT XYZ Indonesia, 2025). Although the company had increased the maintenance budget allocation by 192% from 2024 to 2025, the actual fixed costs consistently exceeded the planned limits. This phenomenon indicates fundamental problems in the planning, management, and control of the heavy equipment maintenance budget, which directly impacts the effectiveness and efficiency of the company's operational performance.