Tag Archives: indonesia

DENSO kick off operation of third plant & 40th birthday in Indonesia (7 March 2015)

PT Denso Indonesia, a joint venture between Denso International Asia Pte. Ltd. and PT Astra Otoparts, will officially launch operations at its automotive components factory, built with overall investment of Rp 1.4 trillion (US$107.89 million), next month.

The plant, which is located in Bekasi, West Java, will initially produce 10 kinds of autocomponent, including spark plugs, starters, engine control units and speed control units, according to director A. Hartoyo. Around 70 percent of the output generated from Denso’s third facility will be sold in the domestic market, with the remainder set for export.

“We have secured purchase contracts from our consumers, nearly all of whom are car manufacturers in Indonesia,” Hartoyo told reporters after meeting Industry Minister Saleh Husin.

The largest proportion of production would be dedicated to spark plugs, which can reach 7 million units each month and are to be shipped to countries in Asia, America and Europe, while other products would follow market demand, he added.

Denso currently operates two plants in Sunter, North Jakarta, and Bekasi, West Java, manufacturing a wide array of automotive components, such as air conditioners, radiators, spark plugs and filters for major two-wheeler and four-wheeler makers, including PT Toyota Motor Manufacturing Indonesia (TMMIN), PT Astra Daihatsu Motor (ADM), PT Astra Honda Motor (AHM), PT Honda Prospect Motor and PT Suzuki Indomobil Motor (SIM).

The company already exports products overseas, including to Japan, the United States and Europe.

Denso has spent up to Rp 600 billion to develop its new plant since the end of 2012 and further expansion is expected to reach completion by 2018.

Hartoyo said that despite expected slowdown in Indonesia’s car sales this year, the firm anticipated a rebound in the future, and so would continue its plans to expand.

“Even if the market weakens, our investment will not stop. We are advancing, so that when the market climbs, we will be ready to tap into available opportunities,” he said.

Car sales, an indicator of domestic consumption in Southeast Asia’s biggest economy, have dipped by 1.8 percent to 1.21 million in the past year, the first drop in five years after robust annual sales that analysts described as an “automotive boom”.

Along with shrinking car sales, Denso saw sales of its automotive components decline by 20 percent last year.

The Association of Indonesian Automotive Manufacturers (Gaikindo) estimates that vehicle sales will remain at 1.2 million this year on weakening purchasing power despite falling prices of fuel due to an oil glut in the global market.

Industry Ministry director for land transportation vehicles Soerjono said that investment in automotive components might slow this year in line with stagnant growth in auto sales. However, he added, in the long run, sales would still be robust for low-cost green cars (LCGC).

“That’s why we strongly encourage investors to enter production of components for LCGC. It is now the most attractive sector and also a global product that we can export easily,” he said.

The autoparts industry generates a significant multiplier effect, with a firm like Denso able to absorb supporting materials from 200 to 250 suppliers.

See more at: thejakartapost.com

DENSO to Build New Plant in Indonesia



DENSO Corporation today announced that it will construct a new plant in the Bekasi District of West Java Province, Indonesia in response to growing vehicle production in the country. The new plant, PT. DENSO INDONESIA Fajar Plant (tentative name), will start operations in February 2014 and produce engine control products, including engine electronic control units (ECUs) and variable cam timing (VCT) control systems, as well as starters, alternators, and other devices.

“DENSO considers Indonesia to be a growing market in Asia,” said Akio Shikamura, senior executive director of DENSO’s Thermal Systems Business Group. “By expanding production capacity, DENSO will increase its production ratio in the country, better serve its customers, and contribute to the Indonesian economy in terms of investment and employment.”

DENSO has been doing business in Indonesia for nearly 40 years since establishing PT. DENSO INDONESIA in 1975. Currently, DENSO produces automotive air-conditioning systems, radiators, spark plugs, filters, and other products at two plants, Sunter Plant and Bekasi Plant. The new plant will be DENSO’s third plant in the country.

Profile of new plant
1. Name: PT. DENSO INDONESIA Fajar Plant (Tentative name)
2. Location: Bekasi District, West Java Province, Indonesia
3. Investment: Approx. 1,040 billion rupiah (approx. US$110 million*)
4. Employees: Approx. 1,300 (planned for March 2016)
5. Site area: 200,000 m2
6. Floor area: 24,000 m2
7. Business: Manf. ECUs, VCT systems, starters, and alternators

2. Location: Jakarta, Indonesia
3. President: Yutaka Yamanouchi
4. Established: May 1975
5. Capital: 2,345 million rupiah (approx. US$0.2 million*)
6. Ownership: 68.3% owned by DENSO INTERNATIONAL ASIA PTE. LTD., 25.7% by P.T. ASTRA OTOPARTS, 6% by Toyota Tsusho Corporation
7. Sales: Approx. 4,557 billion rupiah (approx. US$481.2 million* in FY2011)
8. Employees: Approx. 2,600 (as of March 2012)
9. Business: Manufacturing automotive air-conditioning systems, radiators, spark plugs, and filters

* Exchange rate used is 9469.88 Indonesia Rupiah to the US one dollar at the end of August 2012 for convenience only.

About DENSO in Indonesia

DENSO currently conducts business in Indonesia through its two local companies with approximately 2,750 employees: PT. DENSO INDONESIA which manufactures automotive air-conditioning systems, radiators, spark plugs, filters, and other products, and PT. DENSO SALES INDONESIA which sells these products.

About Denso

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 35 countries and regions (including Japan) and employs over 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2012, totaled US$38.4 billion. Last fiscal year, DENSO spent 9.5 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.

Reference: weblink