DuPont sets up subsidiary
Rendi A. Witular, The Jakarta Post, Jakarta
American conglomerate DuPont has set up an Indonesian subsidiary, PT Du Pont Indonesia, to supervise all its operations in the country and establish a stronger foothold for further investment in the future.
The supervision was previously conducted by DuPont Far East Representative Office, a division at the company's headquarters in Wilmington, Delaware.
Du Pont Indonesia president Frank Moniaga said that by establishing the new unit it expected to strengthen its supply chain, enhance its distribution network and offer better customer support in Indonesia.
"Indonesia is an important growth area for DuPont and it is timely that we reaffirm our commitment to the country. PT Du Pont Indonesia will enable faster execution and an improved capability for innovation and value creation in the country," said Frank.
Frank added the company was interested in investing more in Indonesia, but was withholding the investment plan until there was a better investment climate in the country.
He said the company had invested more than US$100 million in five companies in Indonesia, including two wholly-owned companies PT Du Pont Agricultural Products Indonesia (DAPI) and PT Pioneer Hibrida Indonesia (PHI); and three joint venture companies PT Du Pont Powder Coating, PT Brant Mulia, and PT Indonesia Teijin DuPont Films.
DAPI produces crop protection products at two plants in Sidoarjo and one plant in Pasuruan, East Java; while PHI produces hybrid corn seed at two plants in Malang, East Java, and Kabanjahe, North Sumatra, respectively.
Du Pont Powder Coating, a joint venture with Herbert Indonesia and Propan Raya, produces thermosetting powder coating used for metal steel, aluminum and other metal coating applications. The company situated its factory in Cikarang, West Java.
Branta Mulia, which situated its factory in Bogor, West Java, produces nylon 6,6 tire cord. It does not reveal its partner in Branta Mulia.
Indonesia Teijin DuPont Films, a joint venture with Japan's firm Teijin, produces polyester film at its plant in Tangerang, Banten.
Frank said that DuPont was the market leader in Indonesia in the production of hybrid corn seed and powder coating. While its largest export item from Indonesia was polyester film, which it sends to Japan and China.
DuPont, which started business in Indonesia in 1975, currently has 1500 employees in the five companies.
DuPont, which will celebrate its 200-year anniversary on July. 19, has 70 representatives companies around the globe.
DuPont's well known brands include Teflon, a non-stick coatings for cookware products; Lycra, elastane fiber for apparel; Tynex, nylon filament for toothbrush bristle; Kevlar, para aramid fiber for bullets; Cordura, nylon for bags and apparel; Antron, nylon flooring; and Surlyn, ionomer resin for food packaging and golf ball covers.