Kamaz Establishes Wholly Owned Subsidiary in Indonesia
In signs of the growing trends of Russian companies moving into Asian markets, Russian truck maker Kamaz has opened a subsidiary in Indonesia to increase sales of its products, the company has reported.
The 100 percent wholly owned subsidiary, PT Kamaz Trucks Indonesia, has become a hub for Kamaz in Indonesia and obtained an import license for its products. The company is also setting up service centers in Java, Sumatra, and Kalimantan. Kamaz has chosen local distributor PT Pusaka Bumi Transportasi, which is a part of Indonesia’s Blue Bird Group, to help get its products to the market.
Chris Devonshire-Ellis of Dezan Shira & Associates comments, “Kamaz’ move is partially a reaction to Western sanctions and partly entrepreneurial investment. Indonesia is very much a developing market, and Kamaz products will do well there. Our firm is seeing a big increase this year in Russian companies wanting to invest in Asia, with China, the ASEAN nations, and India all being busy destinations for Russian investment. Asia is booming and Russia needs new export markets. It is a sound choice for Kamaz to have made.”
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Indonesia stands out in the ASEAN region for its competitive wages, large labor pool, and burgeoning domestic market. With a population exceeding 250 million, the country is poised to become an immensely lucrative market as it develops further and the urban consumption class continues to grow. In this inaugural issue of Indonesia Briefing magazine, we examine these trends, and highlight how Indonesia has made enormous strides in streamlining and liberalizing its business environment in order to capture larger inflows of foreign direct investment (FDI).