Economy in brief: Astra Otoparts sets up subsidiaries
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JAKARTA: Automotive component maker PT Astra Otoparts (AUTO) has established two subsidiaries to support its operations, the company announced on Friday.
One of the new subsidiaries PT Autoplastik Indonesia, located in Kara-wang, West Java, will produce plastic components for cars. The other PT Velasto Indonesia, based in Purwakarta, West Java, will produce inner tubes and transmission belts for motorcycles, and hoses for both motorcycles and cars.
Publicly listed Astra, part of PT Astra International Tbk, allocated Rp 75 billion (US$7.83 million) and Rp 2.5 billion for Autoplastik and Velasto, respectively, and holds 100 percent ownership of the companies.
The establishment of Autoplastik and Velasto brought AUTO’s total number of subsidiaries to 19. Their fields of operations range from automotive spare parts manufacturer to automotive parts dealer.
However, since 2009, five subsidiaries had stopped operations and are undergoing liquidation proceedings.