News Release (Sumitomo Corp.)
Nov. 16, 2011
Entry into the Motorcycle and Auto Auction Business in Indonesia
Sumitomo Corporation (Chuo-ku, Tokyo; President and CEO: Susumu Kato) will enter the motorcycle and automobile auction business in Indonesia in collaboration with Japan Bike Auction Co., Ltd. (Chuo-ku, Kobe City, Hyogo Pref.; President and CEO: Ryu Nishimura, hereinafter "JBA"), a leading motorcycle auction business in Japan, and Mitsui & Co., Ltd. (Chuo-ku, Tokyo; President and CEO: Masami Iijima; hereinafter "Mitsui & Co.").
To commence this joint business, Sumitomo Corporation agreed to purchase new shares issued through a third-party allocation by PT. JBA Indonesia (Jakarta, Indonesia; President: Kazuhiro Shioyama), an auction company which has already obtained an operating license in Indonesia. The company will start motorcycle auction operations in Jakarta effective November 16, 2011.
<Profile of PT. JBA Indonesia after new shares purchased through a third-party allocation>
・Company Name: PT. JBA Indonesia
・Headquarters: Jl. Topaz BT No 77, Meruya Utara, Jakarta Barat 11620, Indonesia
・President: Kazuhiro Shioyama (will be sent by JBA)
・Main Business: Motorcycle and automobile auction
・Capital Investment Ratio: JBA 66.0%
Sumitomo Corporation Group 14.5%
Mitsui & Co. 14.5%
Local partner 5.0%
・Transaction Volume in 2012: approx. 20,000 motorcycles and 3,000 automobiles
(Target volumes in the next few years are 60,000 and 10,000 units, respectively.)
The Indonesian motorcycle and automobile market has rapidly expanded in recent years as motor vehicles have spread among the population. Sales of motorcycles and automobiles in 2011 are expected to exceed 8,200,000 and 850,000 units, respectively, and the market is mostly dominated by Japanese manufacturers. On the other hand, Indonesia lags behind other nations in its motorcycle and automobile distribution systems, such as retail distribution and financing. Therefore, there is an urgent need to modernize the motorcycle and automobile distribution systems for sustainable and healthy development of the market.
Sumitomo Corporation has already expanded motorcycle and auto retail financing across much of Indonesia. PT. JBA Indonesia will not only sell owned motorcycles and automobiles associated with the financing businesses of Sumitomo Corporation and Mitsui & Co. in Indonesia, but will also invite leading finance companies and motorcycle and auto dealers throughout Indonesia to participate in auction listings. PT. JBA Indonesia aims to capture a leading position in the auction business in Indonesia, leveraging its know-how of auction operations in Japan and the strong reputation of Japanese companies.
PT. JBA Indonesia will initially run motorcycle auctions in Jakarta, then handle automobile auctions, and will expand its operations in provincial cities such as Surabaya and Medan. In addition, PT. JBA Indonesia plans to disclose information on the used motorcycle and automobile market including winning bid prices and contract completion rates in auctions to motorcycle and automobile manufacturers who have business bases in Indonesia. Such information, which has so far not been transparent, is likely to become increasingly available to each manufacturer the same as in developed countries. The availability of transparent information, which enables manufacturers to manage production and shipment volumes more precisely, will contribute to the healthy development of the motorcycle and automobile market in Indonesia.
<Profile of Japan Bike Auction Co., Ltd. >
・Company Name: Japan Bike Auction Co., Ltd.
・Establishment: April 2006
・Headquarters: Chuo-ku, Kobe City, Hyogo Prefecture
・President: Ryu Nishimura
・Main Business: Motorcycle auction
・Stockholders: USS Co., Ltd. (TSE 1st Section Stock Code 4732): 30%
IK Co., Ltd. (TSE 2nd Section Stock Code 3377): 30%
Other Stockholders : 40%
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