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)