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.