Astra to launch cheap sedans by '98: T.P. Rachmat<\/p>\n
KARAWANG, West Java (JP): A joint venture between PT Astra
\nInternational and a Japanese company plans to launch low-priced,
\n1500-cc sedans by 1998.<\/p>\n
Astra's president, Theodore Permadi Rachmat, told reporters
\nhere yesterday that the joint venture will invest US$500 million
\nto produce the car, including $350 million to set up its assembly
\nplant.<\/p>\n
Astra will have 51 percent of the shares in the joint venture
\nand the Japanese partner, whose name was not disclosed, will
\ncontrol the remaining shares.<\/p>\n
The assembly plant will be built on a 500-hectare area at the
\nKerawang International Industrial City in West Java.<\/p>\n
The joint venture also plans to launch cars of a similar type
\nin Thailand next year under the name AFC. The car in Indonesia
\nhas yet to be named.<\/p>\n
"The cars will look like Honda Civic sedans," explained
\nAderizal Nazar, president of PT Toyota Astra Motor.<\/p>\n
Despite having 40 percent local content at the time of
\nlaunching, Aderizal said the car will not qualify for the status
\nof national car because it will be produced by a joint venture.<\/p>\n
A presidential instruction of Feb. 19, 1996, stipulates that a
\n"national car" must use an Indonesian brand name, be produced by
\na company wholly owned by Indonesian shareholders and gradually
\ndevelop domestic technology, engineering and designing
\ncapabilities.<\/p>\n
The ruling also stipulates that a national car must reach 20
\npercent local content by the end of the first year of production,
\n40 percent at the end of the second year and 60 percent at the
\nend of the third year to qualify for three years of tax and
\ntariff breaks.<\/p>\n
The government has said that only the Timor car -- produced by
\nPT Timor Putra Nasional, whose owner is President Soeharto's son
\nHutomo (Tommmy) Mandala Putra -- qualifies for the status of
\nnational car. Despite similar plans to launch automobiles with
\nhigh local content, the models of the Bimantara and Bakrie groups
\nhave not qualified under the national car policy.<\/p>\n
Astra's chief commissioner, Abdul Rachman Ramly, said
\nyesterday that the commercial vehicles produced by his company,
\nincluding the Espass and Isuzu Panther, already contain 40
\npercent to 50 percent in locally-made components.<\/p>\n
The company plans to increase the local content to 60 percent
\nin two years.<\/p>\n
Meanwhile, Director General of Metal, Machinery and Chemical
\nIndustries Effendi Sudarsono yesterday inaugurated the tool and
\ndie factory of PT FUJI Technica Indonesia, a joint venture
\nbetween Astra International (with a 55 percent stake) and three
\nJapanese companies -- FUJI Technica Inc. (25 percent), Nichimen
\nCorp (10 percent) and Itochu Corp. (10 percent).<\/p>\n
The factory was built with a total investment of $30 million,
\nincluding $6 million in shareholder equity and the rest in bank
\nloans.<\/p>\n
The factory, located in the Kerawang International Industrial
\nCity, produces automotive component-making tools like dies,
\nmaster models, checking fixtures and jigs, as well as stamping
\nparts.<\/p>\n
The joint venture will sell its products on the domestic
\nmarket for 50 percent to 60 percent less than import prices.<\/p>\n
Effendi said that in 1995 Indonesia imported $130 million
\nworth of dies.<\/p>\n
In the initial stage, the factory will produce 750 tons of
\ndies and 1,000 tons of stamping parts per year, which will be
\nincreased to 1,500 tons of dies and 6,400 tons of stamping parts
\nper year in a later stage. The production of jigs, checking
\nfixtures and master models will start in the later stage. (jsk)<\/p>",
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