Sony Indonesia to enter local market

Sony Indonesia to enter local market

CIBITUNG, West Java (JP): PT Sony Electronic Indonesia -- a
subsidiary of Japan's Sony Corporation which was designed to
export all its products -- will later this year enter the
domestic market, the firm's executives said yesterday.

Sony Electronic Indonesia, a major producer of hi-fi stereo
sets, radio/tape recorders and compact disc/tape recorders, has
exported all its products since its started operation in March
1992 to the U.S. and Europe, president of the company, T. Tezuka,
said.

The company, which is 95 percent owned by Japan Sony Corp. and
five percent by PT Seruni Sejati, has increased production
significantly from 980,000 audio sets in 1992 to two million sets
in 1993 and 3,150,000 in 1994.

It estimates production this year at 3.9 million sets.

Tezuka said the company's sales revenues also increased from
US$76.5 million in 1992 to $160.3 million in 1993 and to $285
million in 1994 and is estimated to reach $348 million this
year.

"The domestic market is booming," noted Seiichi Kawasaki,
president of PT Sony Indonesia, the marketing arm of PT Sony
Electronic Indonesia.

Tezuka said that the local content of Sony products is now 45
percent for radio/tape recorders and compact disc players, and 35
percent for hi-fi stereo sets.

As the demand for electronic goods is increasing, Sony
Electronic will also increase the local contents of its products
by procuring more parts and components locally, Tezuka said.

"About 15 percent of the components in hi-fi stereos is
imported from Japan and 50 percent from Malaysia and Singapore,"
he said.

PT Sony Manufacturing Indonesia, another subsidiary of Japan
Sony Corp. will start producing televisions in December.

Sony Electronic and Sony Manufacturing are not the only the
producers of Sony electronic goods in the country. PT Amcol Graha
Electronic Industries in Jakarta also assembles Sony products
using imported components. (kod)