Multi-sourcing urged for firms

Multi-sourcing urged for firms

JAKARTA (JP): Minister of Trade Satrio B. Joedono said yesterday that domestic industrial firms should obtain their materials from various sources to avoid the brunt of currency swings such as the sharp appreciation of the yen.

"By multi-sourcing their components, they will not be hurt by any sudden changes in the value of a particular currency," Joedono said when inducting five directors at state-owned companies yesterday.

The new executives are Wahyu Hidayat as finance director and Hardi Gianto as quality director at surveyor company PT Sucofindo.

The other three directors are Hardjo Oetomo as president, Supandi as finance director and Mathias Suhardjo as marketing director of PT Bhanda Ghara Reksa warehousing company.

Joedono noted that the recent steep rise of the Japanese yen against the U.S. dollar would affect local industries which still depend on Japanese components.

He noted, however, that the yendaka (yen appreciation) also be prove fortunate for Indonesia's exports, such as garments and plywood which do not rely much on imported components or materials.

"But again, the benefit of the strengthening yen depends on how we seize the opportunity," Joedono said. (rid)