Indonesian automotive manufacturer Selamat Sempurna says it is readying up to Rp 300 billion ($22 million) to expand its presence into new markets in Southeast Asia. The company plans to acquire distributor firms in neighbouring countries such as Singapore, Thailand and Vietnam.
Finance director Ang Andri Pribadi said the move is part of the company’s strategy to form an integrated upstream-to-downstream business line in order to strengthen its foothold in the region.
“We are readying half of our cash flow, which is now at the level of Rp 400 – 500 billion, for acquisitions and expansion. So, we’re going to (inject) maybe around Rp 200 – 300 billion for this purpose,” Pribadi stated in Jakarta, adding that it might look for bridge loans, if needed.
Selamat Sempurna exports to more than 115 countries worldwide, with Singapore as its biggest market.
Selamat Sempurna is the flagship of ADR Group (Automotive Division). The company claims to be one of the largest filter and radiator manufacturers in the region. It manufactures filters, radiators, coolers, condensers, brake pipe, fuel pipes, fuel tanks, exhaust systems, and press parts. It owns the Sakura filter trademark that has been registered in more than 90 countries.
The firm has been a public company since 1996, and is now listed on the Indonesia Stock Exchange (IDX). It owns a 70 per cent stake in Panata Jaya Mandiri, and a 15 per cent stake in POSCO IJPC, a joint venture company with Posco and Daewoo International Corporation, Korea. The firm also partners Japan-based Tokyo Radiator Manufacturing Co Ltd.