CAR parts maker Ingress Corp Bhd expects its Indonesian operations to start contributing significantly to revenue in the next two to three years. Executive vice-chairman Rameli Musa said that Indonesia will be Ingress' centre for growth in the long term as it has the population size and a good market base, with total industry volume (TIV) expected to reach 400,000 units this year.

    "We believe that TIV in Indonesia will grow as a few companies, including Suzuki, have made Indonesia their centre of operation," he told reporterd after the company's annual general meeting in Bangi, Selangor, yesterday.

     Rameli said the potential for growth in Indonesia is quite high, but whether the volume is big enough as compared to Thailand's is yet to be seen.

    Ingress' initial entry into Indonesia this year was rewarded with contracts to supply mouldings to Mitsubishi and sash to Suzuki.

     Supply has begun for the Mitsubishi project, while mass production for the Suzuki product has just started.

     "We are supplying over 4,000 units of sash monthly to Suzuki, and we will continue to supply moulding to Mitsubishi until 2007. The sales volume to these two companies will depend on orders, but it will certainly expand," Rameli said.

     He also said that the company is talking to order carmakers to supply them with car parts. "We are also trying to secure a deal with Isuzu to supply parts for its operations in Indonesia," he added.

     Rameli is confident of the company's further success in Indonesia, based on its track record in Malaysia and Thailand.

      "Not only are we marketing to car manufactures, we are also targeting existing vendors of the manufacturers in the hope of forming alliances or acting as a Tier-2 vendor to these companies," he said.

      He added that Ingress will only increase its capacity in Indonesia if there is demand. The company has two factories there.

      Rameli also said that the company hopes to perform better in its financial year ending January 31, 2005.

      For the financial year ended January 31, 2004, Ingress posted a net profit of RM11.7 million on the back of a revenue of RM155.5 million.