Philippine Batteries Inc (PBI) is considering setting up a manufacturing facility in Indonesia to supply the country’s fast-expanding automotive industry.

PBI is the largest automotive battery manufacturer in the Philippines, which it sells under the Motolite brand. Around 55% of its output is exported to around 40 markets worldwide, including the USA, Australia, New Zealand, Malaysia and Indonesia.

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With vehicle production and sales rising rapidly in Indonesia, the company has to choose whether to expand production at home, or whether a local manufacturing facility would be a better hedge against future currency fluctuations.

The company said that any appreciation of the Philippine peso against the US dollar directly translates into a big loss of export revenues and earnings. Indonesia is the company’s largest export market after Australia, with battery exports currently at around 20,000 units per month.

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