Business Development Asia LLC

South East Asian Automotive News

Issue 4, December 1997

INDONESIA

PT Astra International has reported a small third quarter loss as a result of a 25% decrease in new car sales, increased financing charges and foreign exchange losses. Astra has reduced earning projections for the full year to Rp350bn (US$77m) from Rp650bn (US$142). However its agribusiness IPO will be listed on December 19th which allow Astra to realize new funds and tighten its focus. (November 14^th 1997)

Daihatsu Motor Co Ltd. of Japan has indicated that it will reduce output in Indonesia by 40% to 2,000 units per month. The depressed demand for cars and the decline in the rupiah were cited as reasons for the cutback. (November 11^th 1997)

PT Denso Indonesia Corp., an automotive components manufacturer, plans to build a production facility in Bekasi, West Java. This plant will allow Denso to increase production of components to 450,000 units a year. (December 2^nd 1997)

Nissan Motor Co. will establish an engine plant in Indonesia. The plant is scheduled to open in the year 2000 and will produce 40,000 engines annually. The US$66m investment will provide engines for local use and export to Malaysia, the Philippines, Taiwan and Thailand. (December 8^th 1997)

PT Timor Putra Nasional defended its national car project at a recent WTO dispute settlement panel requested by the U.S., Japan and the European Union. Indonesia restated its case that its protective tax policy falls within WTO guidelines. (December 6^th 1997)