The partnership between both sides involves the placing of the PSG logo on Multistrada Arah Sarana's products, while the Paris-based football club agreed to visit Indonesia in 2017 and to lend five of its players to promote Multistrada Arah Sarana's products. PSG also plans to open a soccer academy this year in Indonesia in cooperation with local soccer club Bali United. Meanwhile, PSG - which was acquired by Qatar Sports Investment (part of the Qatari government) - is eager to create new revenue streams and curtail its over-reliance on sponsor funding from Qatar.

Tire manufacturer Multistrada Arah Sarana produces the Achilles brand for cars and Corsa brand for motorcycles. By signing the partnership deal with PSG, both tire brands become the official tires for PSG in the period 2016-2019.

Pieter Tanuri, President Director of Multistrada Arah Sarana, said the deal is a great strategy for the company to boost sales across the globe as PSG is one of the world's leading football clubs with fans spread across the globe. In Indonesia there are around 2.6 million PSG fans, exceeding the football club's fan base in France. Sebastien Wasels, Head of International Development of PSG, added that PSG is currently ranked fourth in the Deloitte Football Money League, a ranking of football clubs based on revenue generated from soccer operations, implying that PSG is one of the wealthiest clubs worldwide.

Most of Multistrada Arah Saran's output - some 75 percent - is exported abroad, while the remainder is absorbed by the domestic market. Tanuri said the company's tire exports to Europe number around one million tires per year, collecting USD $50 million in revenue. Tanuri has high hopes to see sales in Europe doubling over the next three years. Currently, Europe contributes 15 percent to the company's sales. Tires of Multistrada Arah Sarana are exported to a total of 93 countries around the globe with its biggest markets in the Middle East, United States and Europe.

In 2016 Multistrada Arah Sarana targets a 15 - 20 percent (y/y) growth pace in sales from USD $237 million one year earlier. However, in the first quarter of 2016, the company's sales declined 6.8 percent (y/y) to USD $62 million. Meanwhile, its net losses narrowed to USD $1.3 million in Q1-2016 from USD $2.6 million in the same quarter one year earlier, particularly supported by the appreciating rupiah exchange rate.

Further Reading:

Company Profile of Multistrada Arah Sarana
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