Indomobil sets up engine parts plant

Indomobil sets up engine parts plant

By Russell Williamson

Indomobil is one of three companies which have signed a joint
venture agreement to establish a new US$5 million engine parts
manufacturing facility in Indonesia.

Tochigi Fuji Industrial Co, a Nissan affiliated company, will
have a 60 percent share, Indomobil a 30 percent share and
Marubeni Auto Sales a 10 percent share in the factory which is
expected to begin production in early 1997.

The plant will produce engine components to supply Nissan,
Mazda, Suzuki and Toyota engines.

The engine components will be used in locally assembled
engines and exported to Japanese carmakers' manufacturing plants
elsewhere in Asia.

Sales of the parts are expected to be worth about US$7.5
million per year by 2000.

The export of these parts and the increase in local content of
Indonesian assembled vehicles will also allow Indomobil to import
vehicles and kits at a lower tariff rate.

Meanwhile, Indomobil is also working on a deal which would
allow Indonesian visitors to Australia to pre-book and pay for
rental vehicles to drive in Perth, Western Australia.

Indomobil's managing director of marketing and business
development, Angky Camaro, said there was often a problem for
visitors hiring rental vehicles upon their arrival in Perth
because of the scheduled arrival and departure times of flights.

Sempati Airlines flights from Jakarta and Denpasar arrive in
Perth late at night and depart early in the morning.

Angky said no rental car firms allowed pick up or delivery of
cars at Perth airport at these times so Indomobil was
endeavoring to provide a service through a Perth-based rental
firm, Sunset Car Rental.

Although no contracts have been signed, the service could
begin within the next month.

Rental cars are likely to be able to be booked in Indonesia
through travel agents, Sempati Airlines and possibly Garuda
Airlines.