A pump that supplies hydraulic oil to a boom cylinder and a turning hydraulic motor; a regenerative hydraulic motor is coupled to the pump and to which the hydraulic oil discharged from the boom cylinder at a time of boom lowering and/or the hydraulic oil discharged from the turning hydraulic motor at a time of turning deceleration is/are led; an engine drives the pump; an alternator mounted to the engine and operable to rotate an output shaft of the engine when electric power is supplied to the alternator; an electrical storage device connected to the alternator; a power converter interposed between the alternator and the electrical storage device; and a controller that switches the power converter to either a servo-on state or a servo-off state and that controls the power converter either in a charging mode or in a discharging mode when switching the power converter to the servo-on state.