Tosanjaya gets $10m loan

JAKARTA (JP): Car parts maker PT Bakrie Tosanjaya, a subsidiary of PT Bakrie and Brothers, signed yesterday a US$10 million loan with Mitsui Leasing and Development Ltd.

Bakrie said the five-year loan had an interest rate 2.15 percent above the London Interbank Offered Rate and a grace period of one year.

The company said that with the loan it would raise its monthly production capacity to 2,350 tons of car parts from 1,100 tons.

It plans to start producing 250,000 sets of rocker arm assemblies next year.

Bakrie Tosanjaya recently cooperated with Japan's Jidosha Buhin Kogyo in a US$5 million project to build a power train component factory.

The factory will be able to produce 720,000 ring gears a year, of which 50 percent will be sold to Jidosha. (das)