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JAKARTA: PT Astra Otoparts Tbk, represented by its 2 subsidiaries, namely PT Velasto Indonesia and PT Ardendi Jaya Sentosa, signed a memorandum of understanding with PT Kiat Innovation Indonesia, to bring inspiration to the work of the nation's Rural Multipurpose Mechanization Tool or AMMDes through two joint venture companies that will soon was established in the near future, in the Ministry of Industry Building of the Republic of Indonesia on Tuesday, March 27, 2018.

Witnessed directly by the Minister of Industry of the Republic of Indonesia, Airlangga Hartarto, the memorandum of understanding containing the establishment of a joint venture company was signed by the Director of PT Velasto Indonesia and the Attorney of PT Ardendi Jaya Sentosa, Reiza Treistanto and the President Director of PT Kiat Inovasi Indonesia, Sukiyat.

"The two joint ventures that will be established soon will be PT Kiat Mahesa Wintor Indonesia (KMWI) as a company that designs, manufactures, and manufactures AMMDes, as well as PT Kiat Mahesa Wintor Distributor (KMWD) as a company that markets, sells and distributes spare parts, and providing post-sales technical support services, "concluded Director of PT Velasto Indonesia, Reiza Treistanto.

Collaboration that is in line with the spirit of Jokowi-JK NAWA CITA

AMMDes was born from the Sukiyat idea through Mahesa which was produced at the Kiat Motor location, along with PT Velasto Indonesia, which had been innovating to create plantation transportation equipment, namely WINTOR. "In this memorandum of understanding, we will collaborate through PT Kiat Mahesa Wintor Indonesia, which will carry its own platform, AMMDes with the KMW brand (Kiat Mahesa Wintor)," explained the Managing Director of PT Kiat Inovasi Indonesia, Sukiyat.

This KMW product will be developed and implemented with the support of related industry associations, suppliers, material producers, parts and components in the country so that it will become an inspiration and pride that the AMMDes are the work of the nation's children. Multipurpose mechanization tools will be presented to the midst of rural communities that have not been reached by adequate transportation facilities and facilities to increase the productivity of various aspects of economic activities in the countryside and realize rural economic independence.

The collaboration between the two parties is also based on regulations, policies, studies and incentives that will be facilitated by the Ministry of Industry. With the presence of AMMDes, it is hoped that it can also grow jobs from a range of supporting industrial activities.

"The AMMDes program is very strategic as an effort to help improve the economy in the countryside by preparing multipurpose mechanization tools, both as a means of production and transportation equipment," said Minister of Industry, Airlangga Hartarto.

Maximize the Level of Domestic Content (TKDN)

The Ministry of Industry also continues to strive to guard the AMMDes by maximizing the level of domestic content (TKDN) through consolidation with domestic industry players. These efforts have succeeded in building a commitment of cooperation in 58 domestic industries to be ready to become suppliers of AMMDes components and 22 of them are IKM. At present, the domestic industry has been able to produce 183 types of components, equivalent to 68% of the total AMMDes value. In the future, the supply capability will be encouraged to continue to be improved.

AMMDes function

AMMDes is designed with two functions at the same time, the function of production equipment to increase agricultural productivity in the countryside and the function of transporters to mobilize agricultural products. In its function as a mechanization tool, AMMDes can also be combined with various post-harvest processing equipment, generator sets, and water pumps to support economic activities in the countryside. With the transport function, this mechanization tool is also ideal to be used to improve connectivity between the economic center and the center for producing basic needs in the village.

With its multipurpose function, AMMDes is very suitable to be used as a supporting tool for realizing rural and agricultural development programs by the Ministry of Ministry, Ministry of Cooperatives and Small and Medium Enterprises, Ministry of Education and Culture, Ministry of Environment and Forestry, Ministry of Agriculture, and KKP.

Investment for AMMDes

The investment plan will be carried out in stages up to a value of 300 billion rupiah and the first production site will be established in Klaten, Central Java. Readiness in designing, testing, producing, distributing and after-sales services will be supported by Astra Otoparts, the Astra group company that has experience in the largest component manufacturing and trading in Indonesia.

In addition to the signing of the memorandum of understanding, in this series of events on March 27-29 2018, there were also Focus Group Discussions and AMMDes platform exhibitions and various components of AMDDes spare parts involving nearly 60 national companies, both Small and Medium and Large scale industries. With the aim of initiating the elaboration of obstacles, challenges and opportunities for AMMDes facilitated by the Ministry of Industry.

Jakarta, March 27, 2018

Reiza Treistanto                                                             Sukiyat

Director of PT Velasto Indonesia President                         Director of PT Kiat Inovasi Indonesia

Overview of PT Astra Otoparts Tbk

PT Astra Otoparts Tbk (AOP), part of the PT Astra International Tbk group which is the largest automotive component manufacturing and trading company in Indonesia. With more than 52 subsidiaries and more than 38 thousand employees, AOP is the main supplier for all two-wheeled and four-wheeled motor vehicle manufacturers in Indonesia. (www.astra-otoparts.com)

Overview of PT Velasto Indonesia

PT Velasto Indonesia is an AOP subsidiary established in 2013, with full ownership by AOP. The focus of production is on high-quality automotive rubber components, as well as producing Wintor for plantation purposes.

Overview of PT Ardendi Jaya Sentosa

PT Ardendi Jaya Sentosa is an AOP subsidiary founded in 1987, with full ownership by AOP. With more than 24 sales office networks in Java, Bali and Sulawesi as well as 52 major dealers spread throughout Indonesia.

Regarding PT Kiat Inovasi Indonesia

PT Kiat Inovasi Indonesia was established in 2015 in Surakarta by Sukiyat. Is a company engaged in buying and selling agricultural equipment, workshop equipment, automotive tools, and spare parts.