Aiwa of Japan opens new audio plant in Bekasi

JAKARTA (JP): PT Aiwa Dharmala, a joint venture between Aiwa Co Ltd of Japan and the Dharmala Group, opened its audiovisual equipment factory in Bekasi, West Java, yesterday.

Dharmala Group president Suyanto Gondokusumo, who officially opened the factory, said the new joint venture would export its products to the United States, Europe and to Asian countries, including Japan.

"We are now facing a tough economic climate. In this situation, exports are very important. In line with governmental wishes, the Dharmala Group will develop more value-added exports," he said.

"To remain competitive, we've also selectively chosen our business partner to ensure that both parties benefit from the relationship," Suyanto said.

Aiwa Dharmala, established last March, is 40 percent owned by PT Aster Dharma Industri, a subsidiary of the Dharmala Group, and 60 percent by Aiwa Singapore Ltd, a subsidiary of Japan's Aiwa Co Ltd.

The factory has a capacity to produce 400,000 sets of audiovisual equipment per year and it is expected to produce 2 million sets by 2000.

Suyanto added that the company, with paid-up capital of US$5 million, had invested US$10 million to further develop Aiwa Dharmala.

He said the company would increase its total investment to $50 million by 2000.

The president of Japan's Aiwa Co Ltd, Yoshio Ishigaki, said his company planned to make Indonesia its manufacturing base for Aiwa products.

He said Indonesia not only had a substantial amount of human resources, but also had manufacturers of audiovisual components to support operations.

He said the establishment of Aiwa Dharmala's factory, Aiwa's second factory in Indonesia, was part of its program to boost its presence in Indonesia.

"Our first factory, located in Sukabumi, was opened in April 1996. Combined with our Japanese, Singaporean and Malaysian factories and contracted partners in the Philippines, China and Hong Kong, Aiwa has created a comprehensive production network in the Asian region," he said.

The Dharmala Group, which was established in 1954 in Surabaya, currently has 13 publicly listed companies, including one each in Hong Kong and the Philippines.

The group focuses on financial services, agriculture, real estate, electronics, heavy equipment, and consumer and retail services.

Japan's Aiwa Co Ltd began as a microphone manufacturer in 1951. The company has since successfully targeted strategic market areas to become a manufacturer of audio, visual and computer peripheral products, such as mini component systems, headphone stereos, VCRs, CD players, radios and cassette recorders.

The company has diversified into data communications and home appliances as well. (08)