Bakrie to launch multipurpose vans in December<\/p>\n
JAKARTA (JP): PT Bakrie Motor of the Bakrie Group plans to
\nlaunch its own multi-purpose vans in December, the group chairman
\nsaid yesterday.<\/p>\n
Aburizal Bakrie said the vans would have no less than 40
\npercent local content in the first year of production.<\/p>\n
\"All tests on our prototypes will be completed by the end of
\nnext month and commercial production will start by November,\"
\nAburizal told vendors here yesterday.<\/p>\n
In the first year, Bakrie Motor will produce some 15,000 vans
\nusing three engine types, namely 8-valve, 1,900cc engine; 16-
\nvalve, 2,000cc engine; and 2,000cc turbo intercooler engine.<\/p>\n
Bakrie vans, combining British and French technology, will be
\nlaunched at the Jakarta Convention Center on Dec. 13 and 14 for
\ninvited guests and on Dec. 14 for the public.<\/p>\n
Aburizal would not reveal the prices of the vans. But he said
\nearlier the vans would be sold for between Rp 38 million
\n(US$15,600) and Rp 60 million, depending on the specifications
\nrequested by buyers.<\/p>\n
He said he had spent US$30 million to develop Bakrie vans,
\nincluding the designing, engineering and production of engines,
\nchassis, body and prototypes.<\/p>\n
The designing, engineering and production of the engines has
\nbeen assigned to Peugeot-Citroen Moteur of France; the chassis
\nand body to Creative Automotive Design Ltd of Britain; and the
\nproduction of the prototypes to Creative Manufacturing Systems
\nLtd of Britain.<\/p>\n
A number of Bakrie prototypes are undergoing a series of tests
\nat Leyland Technical Center in Britain.<\/p>\n
Aburizal said Bakrie vans would be assembled at PT Ningz
\nPacific Motor's assembling facilities in Serang, West Java.<\/p>\n
Bakrie Motor had acquired a 45 percent stake of Ningz Pacific
\nfor Rp 120 billion ($49.3 million).<\/p>\n
Bakrie Motor is currently building a stamping plant in Serang,
\nwith a total investment of $120 million.<\/p>\n
Aburizal said a number of domestic and foreign banks were
\nfinancing his car project. However, he refused to name them,
\nsaying \"Wait until we sign the loan agreement later this month in
\nBali.\"<\/p>\n
Bakrie is one of several newcomers to the Indonesian
\nautomotive industry challenging the domination of the established
\nconglomerates like Astra and Indomobil. The latter have dominated
\nthe market by producing and assembling Japanese cars.<\/p>\n
Two other newcomers, PT Timor Putra Nasional and PT Citramobil
\nNasional, earlier entered the market with sedans that rely on
\nSouth Korean technology.<\/p>\n
Aburizal said he was determined to increase local components
\nof Bakrie vans to 60 percent by the end of 1998, to qualify for
\nduty and tax breaks from the government.<\/p>\n
The chairman of the Association of Indonesian Auto Parts and
\nComponents Manufacturers, A. Safiun, said it would be very
\ndifficult for newcomers to reach local content of 60 percent in
\nthe second year.<\/p>\n
He contended that the country's most popular van, Toyota
\nKijang, involved more than 50,000 people to reach the current
\nlocal content of slightly over 40 percent.<\/p>\n
\"It must involve over 100,000 people to reach 60 percent local
\ncontent in a car,\" Safiun said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-to-launch-multipurpose-vans-in-december-1447893297",
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