Mitsubishi, Bakrie sign deal

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)