Chitose International Tbk (henceforth referred to as the ‘company’) signed a Joint Venture Agreement with well-established Japanese company, Okamura Corp on Monday, 27th April 2015. This move marks the latest stage of an official partnership first announced last year (See Chitose Internasional Tbk to Cooperate with Okamura Corporation). As is detailed in the agreement, cooperation is to be primarily focused on product quality enhancement and a strengthening of the two partners’ marketing and distribution network. The joint venture company’s activities and operations will operate under the company name of Okamura Chitose Indonesia.

Okamura Chitose Indonesia has three core objectives including:

1. Tap into distribution channels for the upper and high end market segments
2. Supply Indonesian companies with Japanese-standard quality products, services, and after-sale support
3. Expand the presence of store displays and furniture shops within the local market, with the AEON and UNIQLO projects standing as examples of this type of initiative

“Through this cooperation, projected profit in the first year will reach 30 billion IDR and an annual growth target of 15 – 20%,” said President Director Mr Dedie Suherlan, speaking at the Joint Venture Agreement signing event in Jakarta.

With promising figures from the World Bank in regards to Indonesia’s market and economic potential, Chitose is currently focused on taking advantage of this opportunity to expedite its growth and development. In addition to an expansion of its factory, the company is also seeking to forge new partnerships that can strengthen its market presence and distribution.

Based in Yokohama, Japan, Okamura Corp has dominated the office furniture and store display industries since 1945. Okamura has 32 affiliated companies, 22 of which are based in Japan and the rest are spread across Asia in countries such as China, Thailand, Singapore, and Hong Kong. Net profit in March 2014 reached 211.4 billion JPY (approximately 22.8 trillion IDR) with assets reaching 190.9 billion JPY (roughly 20.6 trillion IDR).

In 2014, Chitose recorded net profits of 283.44 billion IDR with total assets growing by 39% to 365.09 billion IDR from 262.92 billion IDR in 2013. The company’s liabilities over the same period decreased by 6% to 73.45 billion IDR, while total equity rose by 58% to 291.65 billion IDR.  

The company is proceeding with plans to open a flagship store in East Java to tap into the retail market and has several other projects in East Indonesia scheduled to begin construction this year. Preparatory plans for two new factories located in Cimahi, West Java will be finalised and reviewed as part of the company’s business strategy going forward.