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From Value One, Winter 2014-2015 No. 47
PT. Metal One Steel Service Indonesia
New Steel Service Center for Automotive Steel Sheet Processing
Established in 2014, Aiming to Expand Operations
PT. Metal One Steel Service Indonesia (MOSSI) commenced operations in September 2014 as a steel service center processing automotive steel sheet. It is located in the Greenland International Industrial Center (GIIC) industrial park, about 40 kilometers to the southeast of Indonesia's capital, Jakarta. Although Metal One has a 50 percent stake in PT. Steel Center Indonesia, the need to meet flourishing processing demand for automotive steel sheet led to the establishment of a new steel service center wholly owned by the Metal One Group (99.9 percent Metal One and 0.1 percent PT. Metal One Indonesia).
Car production has continued to expand in Indonesia, from 490,000 vehicles in 2009 to 1.2 million in 2013, and reached 1.3 million in 2014. Automotive companies are all planning to increase exports, so production is expected to expand again. Japanese cars account for 90 percent of the domestic market, with seven-passenger MPV models making up half that total. Due to the Low Cost Green Car policy—in which purchasers can obtain preferential tax treatment—the market for low-cost compact cars with great fuel economy has been growing.
While there are factors such as the recent exchange rate environment and a still-developing infrastructure that hamper the expansion of production, against the backdrop of a population of 250 million—fourth in the world after China, India and the U.S.—Indonesia's car industry is expected to continue to expand.
Suzuki's Tambun Plant No. 2 is in the GIIC industrial park where MOSSI is located, and a new Mitsubishi Motors car plant will be established there in 2017 as well. There are also many parts manufacturers nearby, and MOSSI plans to reliably handle their requirements while expanding operations in line with the mission statement the company has outlined, obtaining the highest evaluations and profits while contributing to Indonesia's progress.
Communicate with a Smile
This is my first overseas posting, and local life has been a series of first-time experiences. Indonesia's tropical climate keeps the temperature at 30ºC year-round, and the people are tranquil. There are many street vendors around town, and traditional cuisine is even tastier than I had imagined. The chronic morning and evening traffic jams and the complexity of dealing with the various tax and licensing systems can be frustrating, however.
I had heard that Indonesians are gentle, friendly and emphasize communication, and that is certainly true at our company. From the morning greeting of selamat pagi to selamat malam at the end of the working day—as well as when dealing with customers—everyone smiles and speaks up, seeming to enjoy communicating with a smile even while busy. Caught up in everyday duties, I often seem to have a gloomy demeanor, to the extent that the staff often tells me to smile. My daily work tends to be focused on the phone and e-mail, but I have a real sense of the importance of speaking directly (with a smile, of course) as much as possible, and have been devoting efforts to that.
An Indonesian street vendor
Kira-kira
I've heard that the expression "kira-kira" is often used to describe Indonesia's national character. In Indonesian, kira means "to think," while kira-kira means "approximately." For example, when I place a food delivery order, the order may not be properly received, which leads to it not arriving on time or the order being wrong. In terms of work, we cannot inconvenience business partners with late deliveries or inconsistent content, so I take care to leave concrete evidence of dealings with contracts, e-mails and memos while increasing the frequency and precision of conversations with people involved.
Ramping Up for Full-Scale Sales Efforts
To handle the automotive industry's vibrant growth, JFE Steel Corporation will be launching PT. JFE Steel Galvanizing Indonesia in 2016, and Nippon Steel & Sumitomo Metal Corporation will be starting up PT. Krakatau Nippon Steel Sumikin the following year. MOSSI will be undertaking full-scale sales efforts to market the automotive steel sheet we handle as localization proceeds.

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