PT Komatsu to float shares worth $33 million

JAKARTA (JP): PT Komatsu Indonesia, a Japanese-Indonesian joint venture producing heavy equipment, announced yesterday it will float shares worth about Rp 75 billion (US$33 million) on the capital market here next month to finance its expansion plan.

Budiardjo Sosrosukarto, the company's vice president, told a press conference that the funds to be raised from the share sales will be used to increase the production capacity of the company's manufacturing plant, establish new facilities and increase working capital.

He explained that 29 percent of the public funds will be used to buy machinery and equipment, 27 percent to purchase land, 26 percent to establish new buildings and 18 percent for working capital.

"The expansion program will enable Komatsu Indonesia to double its annual production to 2,400 units in 1997 from 1,200 units last year," he said.

Budiardjo said the new shares would make up 23.53 percent of the company's paid-up capital. The remaining shares will be owned by Komatsu Ltd. of Japan (38.24 percent), Sumitomo Corp. of Japan (6.88 percent), Marubeni Corp. of Japan (4.59 percent) and PT United Tractors (26.76 percent).

The new formation of shareholders will allow 50.29 percent of the ownership to go to the Indonesian side, he commented.

Currently Komatsu Indonesia is 50 percent owned by Komatsu, 35 percent by United Tractors nine percent by Sumitomo and six percent by Marubeni.

"We intend to become a real Indonesian company... which will be less dependent on Japan, especially in product development," Budiardjo said.

Local components

He said that since its establishment in 1982, the company -- whose main products are hydraulic excavators, bulldozers, motor graders and wheel loaders -- has continued to increase the amount of locally-produced components in its products.

In 1992, the amount of Indonesian-made components in its products reached 37 percent and has continued to rise to 43 percent this year.

The amount of imported components from Japan has also declined from 63 percent in 1992 to 52 percent this year. Currently some five percent of the components are imported from countries other than Japan.

Budiardjo said the company initially produced components in 1987 and began exporting components to Komatsu in Japan in the next year.

This year, the company's exports of heavy equipment have gone to Thailand, Malaysia and the Philippines.

Komatsu Indonesia increased its sales from Rp 187.16 billion in 1993 to Rp 275.8 billion last year. The sales in the first six months of this year reached Rp 174.3 billion.

The company's before-tax profit more than tripled from Rp 13.5 billion in 1993 to Rp 42.2 billion last year, while its net profit rose from Rp 2.4 billion to Rp 17.7 billion. (pwn)