Enkei Indonesia to supply 15,000 wheel rims a month

CIKAMPEK, West Java (JP): Japanese Enkei auto wheel rims are making their entrance into Indonesia through PT Enkei Indonesia, a joint venture by Indonesia, Japan and Singapore firms.

The company's president, Michiharu Ochiai, said at a ceremony marking the commencement of the company's commercial production here Sunday that his company is producing 15,000 units of aluminum auto wheel rims per month, 30 percent of which are exported to Japan.

"At the moment, we have only one production line facility for aluminum automobile wheel rims. In the near future, we will build a new line for aluminum motor cycle wheel rims," he said.

Wardijasa, a deputy chairman at the Investment Coordinating Board who officially inaugurated the company's production commencement, said that the entrance of foreign auto component vendors like Enkei would help make the government's national car program a success.

"Enkei Indonesia can supply wheel rims to PT Timor Putra Nasional for its Timor car to reach the government-set local content requirements," Wardijasa said.

Timor Putra is given tax and tariff breaks for three years by the government to develop the national car -- the Timor -- in cooperation with Kia Motors Corp. of South Korea.

The Timor car must consist of 20 percent local components by the end of the first year, 40 percent by the end of the second year and 60 percent by the end of the third year.

"This month, more then 30 auto vendors from South Korea will come here to sound out investment possibilities to support the Timor car," Wardijasa said.

Arief Santoso of Enkei Indonesia confirmed Wardijasa's statement on his company's support for the Timor car. "We have talked with Timor Putra on the possibility of supplying it with our wheel rims."

Enkei Indonesia is 17.5 percent owned by Enbhisi Aluminum Wheel Ltd. of Japan, 10 percent by Yew Huat Pte. Ltd. of Singapore, 5 percent by Japanese individuals, 17.5 percent by PT Santoso Bersaudara Mandraguna and 10 percent by PT Setiakawan Setiabudi, both under the Santoso Bersaudara Group.

Arief Santoso, also chairman of the Santoso Bersaudara Group, said that Enkei Indonesia had invested US$18 million for the production line facility for wheel rims.

During the next six months, Arief continued, the company will invest some US$8 million for another production line facility for auto wheel rims, with a capacity of 15,000 wheel rims a month.

Next year, Arief noted, the company will invest another US$8 million for developing a production line facility for motorcycle wheel rims.

In 1998, the company will invest some $US3 million for building production facilities for aluminum auto engine blocks. (rid)