Sanex inaugurates US$12m assembly plant

SERANG, West Java (JP): PT Sanex Qianjiang Motor International inaugurated its US$12 million motorcycle assembly plant at the Modern Cikande Industrial Estate here on Monday, more than one year after it sold its first Sanex motorcycle here in April 2000.

"The opening of this assembly plant demonstrates our desire to provide an affordable and high-quality means of transportation," Sanex Qianjian president Herman Jaya told the press.

Set up in March 2000 as a joint venture company, Sanex Qianjiang is owned by China's Qianjiang Motor International, Malaysia's Lion Group, Taiwan's CPI, which together hold 35 percent of the shares, and Indonesia's PT Sanex.

Since April 2000, Sanex Qianjiang has been importing fully assembled motorcycles from its Chinese principal and selling them in Indonesia.

Starting two months ago, however, the company has begun to gradually reduce its imports as its local plant started producing between 400 to 500 units per day. The plant has a total production capacity of 30,000 units per month.

"The construction of this assembly plant is also part of our effort to encourage foreign investors back into Indonesia, which is in line with government policy," Jaya said.

Since the economic crisis struck Indonesia in 1997, many foreign investors have left the country.

The assembly plant was jointly inaugurated by transportation minister Agum Gumelar, the President's husband Taufik Kiemas and China's Ambassador to Indonesia Chen Si Qiu.

"We are optimistic that in two years time we can produce motorcycles with a local content of up to 70 percent," Jaya said.

Ambassador Chen Si Qiu praised the investment made by Chinese businessmen, saying the move reflected their confidence in the Indonesian market.

Agum hoped that the construction of the assembly plant, which is situated on 8.5 hectares of land, would contribute to the effort to bringing Indonesia out of the prolonged economic crisis.

Agum also said the assembly plant would help provide much needed job opportunities and thus reduce the country's unemployment rate, which had soared since 1997. The plant employs more than 1,000 workers, around 400 of whom are recruited from the surrounding villages.

Sanex Qianjiang now has 43 main dealerships and 273 sub- dealerships all over Indonesia. Sanex is also planning to set up a subsidiary called PT Sanex Agung Motor Indonesia to produce spare parts for the company.(03)