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ermany-based technology supplier Bosch Indonesia will open a new automotive components factory in 2014 in Bekasi to produce oxygen sensors and injectors for car engines.

The ¤10 million (US$13.03 million) factory located at an industrial park east of Jakarta will supply
components to nearby car factories.

Bosch Indonesia managing director Rudy Karimun said the company would use local raw materials and sell to local car factories.

Currently, Bosch Indonesia imports components from other factories in Asia Pacific.

Rudy refused to specify the company'€™s clients but said that '€œas 90 percent of car factories in Indonesia build Japanese cars, so [our clients] tend to be Japanese manufacturers.'€

He said the new factory would employ about 120 staff.

'€œJapanese companies and other global car manufacturers are increasing their capital expenditure overseas, particularly in emerging economies like Indonesia in Southeast Asia,'€ said Bosch president director Herbert Hemming as stated in a press release.

Bosch Group, the parent company of Bosch Indonesia, supplies automotive components, industrial technology, consumer goods, energy and building technology, including security systems. It has a total of 285 factories throughout the world, 67 of which are in Asia-Pacific, including the new one in Bekasi.

Bosch started its activities in Indonesia in 1922. The company'€™s sales grew 30 percent last year, 60 percent of this was in automotive components.

Bosch'€™s products include power trains, injectors, braking systems, airbags, and driving assistance. Rudy said Bosch Indonesia would focus on products that could reduce fuel consumption.

One such technology is the start-stop system that automatically stops engines during traffic jams, starting them again without using the starter. Such engines reportedly consume 8 percent less fuel. Rudy said that some European cars in Indonesia already used this system.

Rudy said that one of Bosch'€™s most important products was the common rail injector for diesel engines. It reduces fuel consumption by 30 percent as well as reducing noise.

Bosch has a variety of factories in Southeast Asia.

A Bosch factory in Malaysia produces power-tool products; a Thai factory produces diesel systems, breaking systems and wipers; and the company'€™s latest factory in Vietnam produces seat belt systems. (nai)