Tokyo, December 6, 2000 -- Honda Motor Co., Ltd., today announced the establishment of a sales subsidiary for its power products in Indonesia.
The new subsidiary, P.T. Honda Lawadinata Power Products, a joint venture between Honda (49% equity) and P.T. Kodrat Adhimulia (51%), will begin operations in February 2001, selling Honda power products in Indonesia as well as to export markets.
The Indonesian power product market is rapidly recovering after the decline caused by the currency crisis of 1997. The new subsidiary will strengthen Honda's power products operations, which began local production in 1997. Honda plans to sell 150,000 units in 2002, a figure which would be four times the total for 1999.
Honda has been selling power products in Indonesia since 1972, and since 1991, its distributor, P.T. Wajamakumur Mandiri (WMM), has been responsible for sales activities.
In 1996, Honda and WMM jointly established a local production company, P.T. Sinar Honda Jaya, with headquarters in Tjikampek, West Java, and the following year began producing engines and water pumps. The new subsidiary will assume all distributorship rights from P.T. Wajamakumur Mandiri.
COMPANY INFORMATION
| Company Name | P.T. Honda Lawadinata Power Products |
| President | Johnson Putra Lawadinata |
| Location | Jakarta |
| Capital | 73 Billion Rupiah (1 Rupiah = Approx. 0.012 Yen) |
| Equity | Honda Motor Co., Ltd. 49% P.T. Kodrat Adhimulia 51% |
| Employees | 43 |
| Business | Import and wholesale of power products to Indonesian domestic market Export of locally produced power products |
| Sales Plan | 2001: 100,000 units / year (a 42.9% increase over the 2000 target) 2002: 150,000 units / year (a 50.0% increase over the 2001 target) |
| Start of Operations | February 2001 |