PT Denso Indonesia Corp, apace with a changing world<\/p>\n
PT Denso Indonesia Corp. is keeping a stride ahead in a
\nfuriously competitive, swiftly changing business world.<\/p>\n
Celebrating its 20th anniversary of operations in Indonesia
\nthis year, the automotive manufacturing firm boasts some exciting
\nnew additions as it satisfies consumer demands, stressing quality
\nand excellence.<\/p>\n
Part of the huge global network of Denso affiliates and
\nsubsidiaries, with more than 56,000 employees and a consolidated
\nnet income of US$483 million in 1996, it has changed its name
\nfrom PT Nippondenso Indonesia Inc. This was done to reflect its
\nexpanding business horizons and realization of the vital
\nimportance of integrating smoothly within the global market.<\/p>\n
Pride of place in its operations will be a new research and
\ndevelopment facility in Cibitung, West Java. Construction of the
\nstate-of-the-art department, projected to cost up to Rp 5
\nbillion, was officially started today.<\/p>\n
"Geographic location, economic gains and Denso Indonesia's own
\ngrowth are all factors which will provide an opportunity for our
\ncompany to become a global player," said PT Denso Indonesia
\nCorp's President Director, Shinji Takeuchi.<\/p>\n
"With that in mind, Denso Indonesia has long sought to garner
\nadded value, increased access and investment growth through
\nexpanding our Cibitung factory."<\/p>\n
Denso Indonesia is already a long-time player in Indonesia.
\nThe contract for the joint Japanese-Indonesian venture was inked
\nin 1973 as the prudent economic principles of the New Order
\ngovernment began to take shape.<\/p>\n
Construction on the Sunter Plant was completed in 1977.
\nProduction sales, predominantly car air conditioners but also
\nincluding radiators and air filters, were slow in the early days.
\nIn a strong relationship that continues to this day, Denso
\nIndonesia's major customer was Indonesia's car owner.<\/p>\n
"At that time, you could say that demand was limited to a
\nhandful of customers," Vice President Director Wiran Tandjungan
\nremembers.<\/p>\n
Denso Indonesia was not deterred, judiciously weighing
\nIndonesia's potential as a strategic geographic hub and the
\nlargest nation by population and area in Southeast Asia.<\/p>\n
"The growth of the automotive industry would also promote
\ndevelopment of supporting industries, such as spark plugs,
\nalternators, ignition systems and car air-conditioning, which
\nwould be integral to the growth of Denso in Indonesia," says
\nWiran.<\/p>\n
The company's confidence paid off. Car ownership rose in the
\n1980s in tandem with Indonesia's booming economy and growing
\nconsumer spending power. Sales of the Toyota Super Kijang soared
\nin the mid-1980s, fueling Denso's annual car air-conditioning
\n(AC) production.<\/p>\n
Demand has continued to increase during this decade. Today,
\nDenso Indonesia produces 300,000 car AC units annually, up from
\njust 100 to 200 in its first years of operation. This represents
\n85 percent of Indonesia's car AC market and 70 percent of the
\nafter-market service.<\/p>\n
The company prides itself on adherence to strict quality
\nstandards. These have become so entrenched within the workings of
\nDenso Indonesia that the company's Japanese headquarters halted
\nretesting of Indonesian-produced AC units in 1991 in
\nacknowledgement of the excellent quality.<\/p>\n
In addition to car AC units, Denso Indonesia produces
\nradiators, filters, sparkplugs, bus air conditioners, starter,
\nalternator, reserve tank, washer tanks, horns, fuel filter and
\ncompressors.<\/p>\n
Denso Indonesia exports its sparkplugs to Malaysia, New
\nZealand, Australia, China, Thailand, Vietnam and Singapore. It
\nalso exports AC parts to Malaysia, Thailand, Japan, North America
\nand the Philippines. It has successfully contracted for exports
\nof bus AC components to Australia, Taiwan, the Philippines,
\nThailand and Japan.<\/p>\n
Its major customers in Indonesia include local affiliates of
\nMitsubishi, Suzuki, Daihatsu, Peugeot, Nissan Diesel, Honda, BMW,
\nMazda, Isuzu, Ford, Volvo, Yamaha, Vespa and Kubota.<\/p>\n
Wiran Tandjungan cites economic lot size in the company's
\nremarkable growth among Denso's Asian operations in Malaysia,
\nThailand, India, Taiwan and Korea.<\/p>\n
With all the relevant factors of area, population, economic
\ngrowth, political stability, production and labor costs weighed
\ntogether, Indonesia has been selected as a hub for production of
\nAC compressors in Denso's operations.<\/p>\n
The decision was made based on both the demand of Indonesian
\nconsumers and the outstanding growth of the Asian market
\nattendant to rise in usage of car ACs.<\/p>\n
Economic efficiency as part of the regional operations was
\nanother important consideration, says Wiran.<\/p>\n
"Through a complementary network, it follows that an AC system
\nassembled in Thailand may use a compressor from Denso Indonesia
\nor, alternately, an Indonesian vehicle may have a condenser or
\ndistributor from Thailand," he says.<\/p>\n
Production of Denso Indonesia AC compressors is projected to
\nincrease from around 300,000 currently to 450,000 in the next
\ncentury.<\/p>\n
At the heart of Denso Indonesia's operations is the
\nrecognition of always striving to do better, particularly through
\nimproving human resources. As companies jostle for a piece of the
\nglobal pie, this preparation is more vital than ever before.<\/p>\n
Denso Indonesia provides on-the-job training for workers and
\npractical immersion in the working environment. Employees are
\nalso undergo training at Denso's international headquarters in
\nKariya, Japan, to enhance their professionalism.<\/p>\n
"All of this is meant to create Denso Indonesia human
\nresources, which will be able to adapt to rapid changes," says
\nWiran.<\/p>\n
The expansion at Cibitung is just one more step in
\nanticipation of a brave new business world for Denso Indonesia.
\nThe Research and Development Department will initially focus on
\nquality control, with design innovation a goal for the immediate
\nfuture.<\/p>\n
"This is intended to ensure Denso Indonesia is competent,
\nbears added value, has international access and is innovative,"
\nsaid Wiran.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-denso-indonesia-corp-apace-with-a-changing-world-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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