KOIKE’s Indonesian subsidiary PT KOIKE MEDICAL INDNESIA (called KOMINDO with a capital of JPY200 million) invested 62.5% by Koike Medical, 30% by Koike Sanso Kogyo and 7.5% by Gunma Koike is now constructing a plant in earnest for the scheduled start of operation in the coming summer.
The plant of KOMINDO is planning to manufacture flow meters, inhalers, outlets and respiration synchronizers for the supply to the Indonesian domestic market and intends to expand the sales channel to the ASEAN market.

KOMINDO was established in the Eraprima Industrial Complex which is located 16km from the center of Special Capital Territory of Jakarta in Java, Indonesia and 5km from the international airport.

Regarding the establishment of the new production company abroad, President Koike described the background saying, “The ASEAN market is growing remarkably and Indonesia in particular is expected to be most prospective having such a large population as 260 million out of the ASEAN’s total population of 600 million. However, with a small portion of the domestic production of medical equipment, Indonesia depends upon import of 90% or more. The number of hospitals including mainly those for advanced medical care is now rapidly increasing under the Government policy. So, the need of medical equipment like outlets is booming so highly that the market growth rate is rising up.” He also added, “As the foreign investment is limited to 49% for the establishment of a local subsidiary for distribution, however, there exists a situation which may not satisfy Koike’s basic aim to promote overseas sales of its products.

On the other hand, it is possible to establish a local production company which is 100% invested by an overseas company and to obtain alone the license of pharmaceutical business. It could allow us to sell our products to a sales agent, and work out a sales expanding strategy taking advantage of two or more distributors.”

Regarding the plant which starts production in May or June, interior works are now on the way and will be followed soon by the introduction of production facilities. For the time being, to minimize the practical works for preparation, they intend to export half-finished products from Gunma Koike for local assembling practices.

President Koike commented enthusiastically, “In the future we wish to develop our home oxygen therapy or other home healthcare business like CRAP in the ASEAN market based on the Indonesian business.”