- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
March 19, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed a loan agreement*1 totaling up to 230 billion Indonesia Rupiah (JBIC portion) with PT. JTEKT Indonesia (JID), which is an Indonesian subsidiary of JTEKT CORPORATION. The loan is cofinanced with a private financial institution and the first financing in Indonesia Rupiah.
- This loan in Indonesia Rupiah is intend to finance JID to add additional equipment for expanding their manufacturing and sales of automobile and motorcycle parts such as electric power steering, bearings and starter clutches, at an existing factory in Surya Cipta City of Industry, Indonesia.
- Indonesia is the growing and promising market where Japanese companies have large market share in automobile and motorcycle parts sales, evidenced with its annual production of over 1.0 million automobiles in 2012. Under these circumstances, JID plans to meet the expected additional orders and increase local procurement needs of Japanese automobile manufacturer, by expanding its automobile and motorcycle parts production capacity of the existing factory. This loan will support the overseas business deployment of Japanese companies by providing finance in local currency, and thereby, contribute to maintaining and improving the international competitiveness of the Japanese automobile parts industry.
- JBIC will continue to support the overseas business deployment of Japanese companies by meeting local currency-based fund needs and drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming functions.
- *1 The loan agreement was signed on March 5, 2013, and the press release was issued today, as the related procedures of relevant parties have been completed.