Astra International sells 60% stake in Toyota Astra Motor. (Finance And Banking).

Indonesian Commercial Newsletter, March, 2003

After nearly 30 years of high growth, the country's auto industry degenerates fast into a mere trading industry. The dramatic shift in the nature of business was marked with sales of stake to foreign principal including the recent signing of a memorandum of understanding (MoI) between Astra International (AI) and Toyota Motor Corp. (TMC) concerning a deal on a 46% stake of AI in Toyota Astra Motor (TAM). The MoU is only a principle agreement. There has not been agreement on the price. AI and TMC also agreed to establish a new company under its distribution division. The manufacturing division and the distribution division, therefore, will become two independent companies, but affiliated under a holding company.

The majority control of TMC in the manufacturing...