- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
July 19, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) has signed a loan agreement totaling up to 130 billion in Indonesian rupiah (JBIC portion) with PT. SUMIDEN SINTERED COMPONENTS INDONESIA (SSI), a subsidiary of Sumitomo Electric Sintered Alloy, Ltd.*1 The loan is cofinanced with private financial institutions.
- This loan is intended to finance SSI for building a new plant in the LIPPO industrial estate in Bekasi located in the outskirts of Jakarta, which will enable Sumitomo Electric Industries, Ltd., the parent company of Sumitomo Electric Sintered Alloy, Ltd., to manufacture and sell sintered alloy parts for automobiles in Indonesia through SSI.
- As robust economic growth in Indonesia is expected to expand its automobile market, Japanese auto makers have been strengthening production capacity one after another. Amid this circumstance, SSI intends to meet the needs of prospective increases in production of the local Japanese automaker affiliates, as well as local procurement of sintered alloy parts for automobiles. This loan will support business deployment of a Japanese company in Indonesia with the local currency. Such a loan will thus contribute to maintaining and improving the international competitiveness of Japanese auto parts manufacturers.
- As a public financial institution, JBIC will continue to support the overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes, including loans to meet the needs of local currency funds, for structuring projects and performing its risk-assuming function.
- *1 Although the loan agreement was already concluded on July 1, 2013, the press release was issued today, after the related procedures have been completed.