Japan to train auto part makers

JAKARTA (JP): A group of five Japanese auto experts will provide technical support to local small- and medium-scale auto component makers under a two-year project, an executive said on Thursday.

Mohammad Husni Banjar, director of the project, said that the visiting experts would train the component makers to help improve product quality.

"The project is aimed at assisting local auto parts' suppliers to enhance their competitiveness on the international market," Banjar told reporters at a media briefing following the inauguration ceremony for the project.

The project, dubbed the Automotive Expert Dispatch Scheme for Indonesia (AEDSI), is being organized jointly by the Japanese and Indonesian automotive industries in cooperation with both countries' governments.

The Japan Automobile Manufacturers' Association (JAMA) and the Japan Auto Parts Industries' Association (JAPIA) are providing the expertise using a financing scheme from the Japan Overseas Development Corporation (JODC).

JAMA's Singapore chief representative Hiroyuki Nakamura said their experts would help the country's auto parts' suppliers to bring their products up to international standard.

"Our experts will assist them in the areas of productivity, management, quality improvement, cost reduction, labor management, and part-making procedures," Nakamura said in his speech.

Chairman of the Association of Indonesian Auto Parts' Industries (GIAMM) A. Safiun welcomed the scheme, saying that the technical assistance was needed by local auto parts' makers to upgrade their competitiveness ahead of trade liberalization in the Southeast Asian region.

The Association of Southeast Asian Nations (ASEAN) has agreed to liberalize trade among member countries in 2002 by reducing import tariffs on various products, including vehicles.

According to Safiun, the country's auto parts' exports stood at US$525 million last year, while domestic sales reached Rp 300 billion.

Banjar said that there were 30 suppliers who had already registered to participate in the program.

"But due to the limited time available, the Japanese experts will only assist nine auto parts' suppliers up until the end of January 2002," he said.

"The program may be extended if there is a strong demand from the auto parts' suppliers," he concluded.(dmr)