Japan’s Denso Corporation plans to build a new USD200m manufacturing facility in Indonesia to supply the country’s fast-expanding automotive industry.
PT Denso Indonesia, a joint venture with PT Astra Otoparts – in which the Japanese company owns close to 64% of the equity, is scheduled to begin construction of the new manufacturing plant in November 2012 in Bekasi – around 40 km east of Jakarta.
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The plant is expected to begin commercial operations at the beginning of 2014. The company did not reveal which components the plant will make, but Industry Minister MS Hidayat said the plant will significantly reduce imports.
PT Denso Indonesia currently has two plants in Indonesia, in Jakarta’s Sunter industrial district and in Bekasi. It makes a wide range of parts including air-conditioning, engine cooling systems and engine electrical systems.
Its main clients are Indonesia’s two largest vehicle manufacturers, Daihatsu and Toyota, but most vehicle assemblers use Denso parts. Daihatsu, Toyota, Honda, Nissan and Suzuki are all in the process of expanding capacity in Indonesia, with new plants to be located in the industrial areas east of Jakarta.
