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ublicly listed automotive-parts manufacturer PT Astra Otoparts (AUTO), a subsidiary of the Astra Group conglomerate, is looking to establish three joint ventures this year in an attempt to grab new businesses, the company'€™s executives said.

'€œWhat is certain is that we will continue to create new business partners every year, but I cannot reveal this year'€™s details at the moment,'€ AUTO director Darmawan Widjaja said after attending the company'€™s shareholder'€™s meeting on Tuesday.

AUTO director Hamdhani D. Salim said that the company hoped to venture into other business sectors that had not been developed by local players, such as front-wheel drive cars, press welding or stamping.

'€œThose are some of the sectors we are really focusing on because of their huge business potentials,'€ Hamdhani said.

AUTO partnered with Japan'€™s MetalArt Corp. last year to create PT MetalArt Astra Indonesia, which manufactures forging parts for cars. In 2012, it teamed up with Juoko Technology and Takagi Sari Multi Utama to set up PT Astra Juoku Indonesia to produce automotive lamp products, and with Italy'€™s Pirelli to establish PT Evoluzione Tyres that manufactures motorcycle tires.

To support its businesses this year, AUTO has allocated a total of Rp 6 trillion (US$525 million) as its capital expenditure (capex) funds. About Rp 2.5 trillion of the funds is earmarked for its own activities and those of its business units '€” in which AUTO is the majority shareholder.

The remaining Rp 3.5 trillion has been set aside for the other subsidiaries AUTO holds minority stakes in. Of the total allocated capex, the company has already spent around Rp 700 million.

Meanwhile, according to Hamdhani, AUTO would rely on its diverse business products to cope with the possibility of less business in 2014.

It currently produces parts for two wheelers and four wheelers, for Astra and non-Astra companies, and for OEM (original equipment manufacturer) and aftermarket segments. '€œSo when one business slows down, we shift to the other,'€ he said.

It expects business to be a tad slow in the second quarter due to several national holidays between April and June. The holidays, Hamdhani said, would potentially lower productivity by 5 to 10 percent compared to the previous quarter.

'€œIn terms of business growth in 2014, we are still following the guidelines set by Gaikindo [the Association of Indonesian Automotive Manufacturers]. It estimates car sales will reach 1.2 million units by year-end,'€ he said.

Last year, AUTO posted a 29.3 percent surge to Rp 10.7 trillion in its revenues, thanks to higher sales volumes to motorcycle and car markets. However, despite the increase, the company saw its bottom line drop 4.5 percent to Rp 1 trillion as it suffered from foreign exchange losses and rising minimum wage.

According to its latest financial report, AUTO had Rp 12.62 trillion in total assets by the end of 2013. Its liabilities amounted to Rp 3.06 trillion and its equities stood at Rp 9.56 trillion.

The company'€™s shares closed at Rp 3,970 on the Indonesia Stock Exchange (IDX) on Tuesday, unchanged from a day before.