Indomobil boosts capacity amid growing demand<\/p>\n
JAKARTA (JP): PT Indomobil, the automotive division of the
\nSalim group, is increasing its production capacity to anticipate
\na growing demand for cars and motorbikes on the domestic market,<\/p>\n
Company president director Soebronto Laras said yesterday the
\ncompany had invested US$170 million over the past two years to
\nincrease the capacity of its Suzuki manufacturing plant in
\nTambun, West Java, and Cakung, East Jakarta, to 80,000 cars and
\n500,000 motorbikes this year, from 60,000 cars and 300,000
\nmotorbikes last year.<\/p>\n
\"We'll continue increasing the capacity of the Suzuki plant to
\n120,000 cars and one million motorbikes,\" he said.<\/p>\n
Soebronto projected the sales of cars in Indonesia to increase
\nto 400,000 vehicles this year from 320,000 last year.<\/p>\n
Sales would further increase in the coming years following the
\ngrowth in the country's economy, he said.<\/p>\n
Indomobil controlled between 20 percent and 22 percent of the
\ndomestic market.<\/p>\n
Soebronto said that to support the expansion in Suzuki's
\nproduction lines, Indomobil had developed nine factories to
\nmanufacture automotive components in its new 200-hectare
\nautomotive integrated estate in the Bukit Indah area, Cikampek,
\nWest Java.<\/p>\n
The investment for each component factory was between $10
\nmillion to $15 million, he said.<\/p>\n
\"The nine component plants are now in trial production. The
\nproducts will be sold on the domestic market as well as exported
\nto Southeast Asian countries, especially Thailand, and Japan,\" he
\nsaid.<\/p>\n
Indomobil, in a joint venture with Japan's Sumitomo group, is
\nalso developing a $120 million Dunlop tire factory at the Bukit
\nIndah automotive estate, with an annual production capacity of
\n1.2 million tires.<\/p>\n
Soebronto said the car tire manufacturing unit was now in
\ntrial production, while the unit which would produce motorbike
\ntires was still under construction.<\/p>\n
\"About 30 percent of the tires will be exported,\" he said at
\nthe public expose to announce the plan of Indomobil's subsidiary,
\nPT Swadharma Indotama Finance, to issue a Rp 150 billion bond.<\/p>\n
Indomobil has also developed a car factory to produce such
\nbrands as Audi, Volvo and Sangyong, and is developing a $40
\nmillion factory to manufacture Hino buses and trucks at Bukit
\nIndah.<\/p>\n
The company will also produce golf balls for export at the
\nsame complex, he said.<\/p>\n
PT Swadharma, a finance company which provides consumer credit
\nfor the buyers of Indomobil products, announced yesterday it
\nwould issue a six-year Rp 150 billion bond on the Surabaya Stock
\nExchange with an interest rate of about 1.5 percent a year.<\/p>\n
Company president director Stefanus Herdianto Karmadi said the
\nlead underwriters of the bonds were PT BT Prima Securities and PT
\nBNI Securities.<\/p>\n
Stefanus said the company had lent out Rp 2.6 trillion since
\nit started operation in 1986 and had recorded Rp 12.33 billion in
\nnet profit last year, up from Rp 8.98 billion in 1995. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indomobil-boosts-capacity-amid-growing-demand-1447893297",
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