Indonesia's largest automotive business group, PT Astra International, expects to have ordered automotive components worth about Rp 4.2 trillion (about US$451.6 million) from small and medium enterprises by the end of the year, up from Rp 3.6 trillion last year.
Dharma Bhakti Astra Foundation chairman Aminuddin said Tuesday that this year's procurement target could be achieved as during the first six months alone, supplies from SMEs assisted by the foundation had already reached Rp 2.1 trillion.
The SME component producers accounted for 80 percent of the small firms assisted by the foundation, he said. "The other 20 percent received assistance from the foundation to produce handicrafts and food products," he explained after the official opening of the foundation's SME Gallery.
The above picture shows Aminuddin (right) describing a machine displayed in the gallery to Bank Mandiri consumer banking director Omar S. Anwar (second right), Astra president director Michael D. Ruslim (third right), Astra director Prijono Sugiarto (third left), and the foundation's chief patron, Tossin Himawan.
Aminuddin said the SMEs accounted for about 40 percent of Astra's total component purchases. Another 45 percent was supplied by bigger domestic companies, and the other 5 percent by foreign companies.
To assist the SMEs, Astra has spent Rp 17.3 billion on training their employees in cooperation with Bank Mandiri, Bank Niaga, and surveyor firms PT Sucofindo and PT Surveyor Indonesia, Aminuddin said.
He said that from January to November, Astra trained 385 employees of its small-scale subcontractors, 81 employees of automotive SMEs not related to the company, 160 technicians, and 1,968 employees of SMEs operating in the handicrafts and food processing sectors.(ndr)
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