Sony plans first full RI subsidiary

Sony plans first full RI subsidiary

TOKYO (AFP): Japan's Sony Corp. said Tuesday it had received the green light to set up its first wholly-owned subsidiary in Indonesia following a change in local government regulations last year.

The company said the new unit, PT Sony Manufacturing Indonesia, would start operating in December with production capacity reaching 300,000 televisions and 300,000 radio-cassette players and mini-component stereo systems next year.

Sony said it was also carrying out feasibility studies on gradually shifting its existing marketing activities in Indonesia to a sales company. Since 1977, the company has been selling televisions and audio products under licensed manufacturing and marketing companies.

Based in Bekasi in western Java, the new company will be capitalized at 560 million yen (US$7 million) and initially employ 450 people.

"Sony considers Indonesia as a market with great potential growth along with such markets as India and Vietnam," Sony said, adding that the new company would allow it to respond more efficiently to the needs of the local market.