JAKARTA - PT Dharma Polimetal Tbk (DRMA) is optimistic about increasing the export volume of automotive components to the United States (US), in line with plans by US President Donald J. Trump to raise import tariffs on goods from Mexico. This was conveyed by Irianto Santoso, President Director of DRMA, in an exclusive interview with IDNFinancials.com dan Suara.com last week (25/3).

"We currently have three factories under construction. First, the factory in Plumbon, Cirebon. It is an expansion of our subsidiary, the joint venture Dharma Kyungshin Indonesia. Starting May 2024, we will begin exports to America, specifically to Montgomery. Over eight months from May to December 2024, we will export a total of 88 containers of 40 feet, which means an average of 11 containers per month," he explained.

According to him, the realization of export volumes is likely to increase, as Donald J. Trump's plan to impose a 25% tariff on imported goods from Mexico will drive up prices for equipment and other automotive products. "This presents an opportunity for us because, don't forget, we are replacing products that the US previously imported from Mexico. Currently, we serve two Hyundai vehicle models and three KIA vehicle models in the US," he added.

He stated that the company supplies 30% of the equipment needs for one Hyundai and one KIA vehicle model in the US, leaving 70% of the potential for vehicle components that the company can still fulfill. Not to mention the component needs of other Korean vehicle models in the US.

"Therefore, we decided to expand the factory. Also, the current Dharma Kyungshin Indonesia factory is three stories high and sits on a 1-hectare (ha) plot of land, with a building area of around 17,000 m³ over three floors. The expansion will be built on a 2-hectare plot, with a building area of 23,000 m³, making it larger than the current factory," he said. (LK/LM)

Let me know if you'd like mo