Mitsubishi, Bakrie sign deal

JAKARTA (JP): Mitsubishi Motors Corporation (MMC) of Japan yesterday agreed to provide technical assistance to PT Bakrie Tosanjaya, a foundry company affiliated with the widely- diversified Bakrie Group.

Under an agreement signed here yesterday by Tosanjaya's president, Thomas Hanan Thoha, and MMC's deputy corporate general manager for international business, Kyo Fujioka, the Japanese firm will provide three-years of operational assistance and two- years of general assistance.

"Through the assistance, Tosanjaya will hopefully transfer technology in the automotive industry," Thoha said, adding that the Bakrie Group has cooperated with Mitsubishi in the past.

He said that there is a lack of high-quality automotive components on the domestic market, causing many automotive manufacturers to import such products.

He said that total domestic demand for foundry products is estimated at 115,000 tons per year, including 70,000 tons of automotive components and 45,000 tons of components for machinery.

Tosanjaya currently supplies 23 automotive producers in the country, including PT Astra Daihatsu, PT Mazda Indonesia, PT Mesin Isuzu Indonesia, PT Toyota Astra Motor and PT Indomobil Suzuki International.

Thoha said that his company, with assets of RP 18 billion (US$8.35 million), will pay a royalty of two percent to MMC.(icn)