<![CDATA[Machinery suppliers increasingly offer machine hours instead of machine ownership, charging customers per running hour with a monthly minimum. The value of these pay-per-use contracts for Indonesian manufacturers depends on operating hours, minimum-payment constraints, and supplier-driven downtime reductions. This study compares ownership and pay-per-use costs over 36 months for 20 customers: 10 using industrial air compressors and 10 operating packaging lines. Monthly running hours are simulated and calibrated against published parameters where available. The results show that ownership is cheaper for all compressor users, generating savings of IDR 35.9–73.8 million per customer, whereas pay-per-use is cheaper for all packaging-line users, saving IDR 121.7–195.1 million. These differences are primarily explained by operating hours rather than machine type. Compressors operate between 4,676 and 5,223 hours, exceeding the 4,263-hour cost-equivalence threshold, while packaging lines operate between 2,759 and 3,485 hours, below their equivalent threshold of 4,643 hours. However, compressor ownership becomes less attractive when capital incurs an annual cost of 3.6–7.7%. The monthly minimum binds in 85 of 360 packaging-line months, yet the most affected customer still achieves substantial savings. Additional uptime generates estimated benefits of IDR 32.3–47.0 million per customer but does not change the preferred contracting option. These findings indicate that pay-per-use contracts can provide substantial economic advantages for packaging-line users with relatively low utilization. Nevertheless, suppliers can sustain higher contractual rates only when their maintenance capabilities reduce downtime sufficiently to outperform customer-managed ownership. The study highlights operating intensity, capital costs, minimum-payment provisions, and maintenance performance as critical determinants of machinery procurement decisions in Indonesian manufacturing]]>
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