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.