PT Denso Indonesia Corp, apace with a changing world
PT Denso Indonesia Corp, apace with a changing world
PT Denso Indonesia Corp. is keeping a stride ahead in a
furiously competitive, swiftly changing business world.
Celebrating its 20th anniversary of operations in Indonesia
this year, the automotive manufacturing firm boasts some exciting
new additions as it satisfies consumer demands, stressing quality
and excellence.
Part of the huge global network of Denso affiliates and
subsidiaries, with more than 56,000 employees and a consolidated
net income of US$483 million in 1996, it has changed its name
from PT Nippondenso Indonesia Inc. This was done to reflect its
expanding business horizons and realization of the vital
importance of integrating smoothly within the global market.
Pride of place in its operations will be a new research and
development facility in Cibitung, West Java. Construction of the
state-of-the-art department, projected to cost up to Rp 5
billion, was officially started today.
"Geographic location, economic gains and Denso Indonesia's own
growth are all factors which will provide an opportunity for our
company to become a global player," said PT Denso Indonesia
Corp's President Director, Shinji Takeuchi.
"With that in mind, Denso Indonesia has long sought to garner
added value, increased access and investment growth through
expanding our Cibitung factory."
Denso Indonesia is already a long-time player in Indonesia.
The contract for the joint Japanese-Indonesian venture was inked
in 1973 as the prudent economic principles of the New Order
government began to take shape.
Construction on the Sunter Plant was completed in 1977.
Production sales, predominantly car air conditioners but also
including radiators and air filters, were slow in the early days.
In a strong relationship that continues to this day, Denso
Indonesia's major customer was Indonesia's car owner.
"At that time, you could say that demand was limited to a
handful of customers," Vice President Director Wiran Tandjungan
remembers.
Denso Indonesia was not deterred, judiciously weighing
Indonesia's potential as a strategic geographic hub and the
largest nation by population and area in Southeast Asia.
"The growth of the automotive industry would also promote
development of supporting industries, such as spark plugs,
alternators, ignition systems and car air-conditioning, which
would be integral to the growth of Denso in Indonesia," says
Wiran.
The company's confidence paid off. Car ownership rose in the
1980s in tandem with Indonesia's booming economy and growing
consumer spending power. Sales of the Toyota Super Kijang soared
in the mid-1980s, fueling Denso's annual car air-conditioning
(AC) production.
Demand has continued to increase during this decade. Today,
Denso Indonesia produces 300,000 car AC units annually, up from
just 100 to 200 in its first years of operation. This represents
85 percent of Indonesia's car AC market and 70 percent of the
after-market service.
The company prides itself on adherence to strict quality
standards. These have become so entrenched within the workings of
Denso Indonesia that the company's Japanese headquarters halted
retesting of Indonesian-produced AC units in 1991 in
acknowledgement of the excellent quality.
In addition to car AC units, Denso Indonesia produces
radiators, filters, sparkplugs, bus air conditioners, starter,
alternator, reserve tank, washer tanks, horns, fuel filter and
compressors.
Denso Indonesia exports its sparkplugs to Malaysia, New
Zealand, Australia, China, Thailand, Vietnam and Singapore. It
also exports AC parts to Malaysia, Thailand, Japan, North America
and the Philippines. It has successfully contracted for exports
of bus AC components to Australia, Taiwan, the Philippines,
Thailand and Japan.
Its major customers in Indonesia include local affiliates of
Mitsubishi, Suzuki, Daihatsu, Peugeot, Nissan Diesel, Honda, BMW,
Mazda, Isuzu, Ford, Volvo, Yamaha, Vespa and Kubota.
Wiran Tandjungan cites economic lot size in the company's
remarkable growth among Denso's Asian operations in Malaysia,
Thailand, India, Taiwan and Korea.
With all the relevant factors of area, population, economic
growth, political stability, production and labor costs weighed
together, Indonesia has been selected as a hub for production of
AC compressors in Denso's operations.
The decision was made based on both the demand of Indonesian
consumers and the outstanding growth of the Asian market
attendant to rise in usage of car ACs.
Economic efficiency as part of the regional operations was
another important consideration, says Wiran.
"Through a complementary network, it follows that an AC system
assembled in Thailand may use a compressor from Denso Indonesia
or, alternately, an Indonesian vehicle may have a condenser or
distributor from Thailand," he says.
Production of Denso Indonesia AC compressors is projected to
increase from around 300,000 currently to 450,000 in the next
century.
At the heart of Denso Indonesia's operations is the
recognition of always striving to do better, particularly through
improving human resources. As companies jostle for a piece of the
global pie, this preparation is more vital than ever before.
Denso Indonesia provides on-the-job training for workers and
practical immersion in the working environment. Employees are
also undergo training at Denso's international headquarters in
Kariya, Japan, to enhance their professionalism.
"All of this is meant to create Denso Indonesia human
resources, which will be able to adapt to rapid changes," says
Wiran.
The expansion at Cibitung is just one more step in
anticipation of a brave new business world for Denso Indonesia.
The Research and Development Department will initially focus on
quality control, with design innovation a goal for the immediate
future.
"This is intended to ensure Denso Indonesia is competent,
bears added value, has international access and is innovative,"
said Wiran.