Japanese firms raise stakes in Astra Daihatsu Motor

JAKARTA (JP): Japanese automaker Daihatsu Motor Co. and major trading house Nichimen Corp. agreed on Thursday to raise their stakes in PT Astra Daihatsu Motor, a subsidiary of Indonesia's largest automaker PT Astra International, to 50 percent from 25 percent.

Publicly listed Astra International's spokesman, Aminuddin, said in a statement that the companies would inject a total of Rp 450 billion (US$40.9 million) into Astra Daihatsu to strengthen the automotive parts manufacturer's operations and financial position.

"This reflects Daihatsu Motor's long-term commitment to Indonesia and paves the way for Astra Daihatsu Motor's manufacturing facility to become a part of Daihatsu's global manufacturing strategy," Aminuddin said.

A memorandum of understanding (MOU) to increase the investment was signed in Osaka by Astra International president Rini M.S. Soewandi, Daihatsu Motor president Iichi Singu and Nichimen president Akira Watari.

Previously, Astra Daihatsu Motor was 75 percent owned by Astra International, 20 percent controlled by Daihatsu Motor and 5 percent by Nichimen.

With the signing of the MOU, Astra International owns 50 percent of the company, while Daihatsu Motor and Nichimen control 40 percent and 10 percent stakes respectively.

Aminudddin said Astra Daihatsu was the largest of Daihatsu's manufacturing bases outside of Japan.

Daihatsu assembled 36,000 cars in Indonesia last year, 15 percent of its overseas production of 230,000 units and 4 percent of its total output of 780,000 vehicles.

Astra is currently struggling with financial problems due to the rupiah's sharp depreciation against the dollar since the middle of last year and a slump in domestic automobile demand.

Rini had previously said Astra owed a total of $1.2 billion to foreign creditors and another Rp 2 trillion to domestic financial institutions as of the end of July.

She said Astra's creditors had agreed to work with the company to restructure its debt.

Astra has asked Japanese automaker Isuzu Motor Co. to raise its stakes in its joint ventures with PT Pantja Motor and PT Mesin Isuzu Indonesia.

It also plans to sell its entire stake in PT Astra Microtronics Technology, a semiconductor producer based in Batam, for between $90 million and $95 million to foreign investors. (jsk)