Auto parts makers eye RI: Govt
Auto parts makers eye RI: Govt
The Jakarta Post, Jakarta
Indonesia's promising automotive sales outlook along with the
country's positive economic growth and current stable political
environment have persuaded some Japanese automotive manufacturers
to commit themselves to setting up component plants here, the
Ministry of Industry says.
According to the ministry, the pledges were made during
industry minister Andung A. Nitimihardja's visit to Nagoya from
June 5 to June 10, where the manufacturers said they had noticed
improvements in the infrastructure in industrial estates, as well
as the investment climate and business licensing procedures in
Indonesia.
In a release issued on Friday, the Ministry of Industry said
that Suzuki would make Indonesia its worldwide export production
base for the APV minivan.
Suzuki -- which has teamed up here with PT Indomobil Sukses
Internasional Tbk -- plans to increase its car production from
120,000 units last year to 200,000 units this year.
The Indonesian Automotive Manufacturers Association (Gaikindo)
has said it expects to see sales this year increase to 550,000
units compared to last year's 483,000.
To support its manufacturing activities here, Suzuki has
brought 30 small- and medium-sized components suppliers to
Indonesia to study the possibility of investing here. Suzuki will
also build a supporting industrial estate near its plant.
Three Japanese firms visited by Andung -- engine component
maker Hamana Parts Industry Co., structural and body parts maker
Bellsonica Co. and plastic components maker Sankei -- have all
confirmed their interest in investing here, according to the
ministry.
In the lucrative motorcycle market -- where five million
motorcycles are expected to be sold this year -- Suzuki, Yamaha
and Honda had shown interest in increasing production capacity.
The release said, Suzuki would increase its production output
from 800,000 units last year to 1.2 million units this year and
two million next year, with a corresponding investment of US$200
million.
Yamaha, meanwhile, would open a second plant in January
2006, which would have a production capacity of 600,000 units per
annum based on an investment of $80 million.
At least 80 Indonesian workers were currently undergoing
training in Japan in preparation for the opening of the new
plants.
Motorcycle market leader Honda will open a third, US$100
million plant in October with a production capacity of one
million units.
As for motorcycle components manufacturers, they were set to
invest $70 million to support Honda's expansion, the release
said.