Bimantara denies monopoly allegation<\/p>\n
JAKARTA (JP): PT Bimantara Cakra Nusa, the automotive division
\nof the diversified Bimantara Group has denied reports that it
\nwould monopolize the import of public transportation auto
\ncomponents subsidized by the government.<\/p>\n
Company president director Jongkie D. Sugiarto said in a
\nstatement yesterday that Bimantara never asked for the job, and
\nthat other parties, including the public transportation
\ncooperatives should also be given the opportunities.<\/p>\n
Jongkie acknowledged that Bimantara has been asked by the City
\nLand Transportation Agency (DLLAJ) and Jakarta's Organization of
\nLand Transportation Owners (Organda) to help in importing
\nsubsidized automotive components for the capital's public
\ntransportation operators.<\/p>\n
DLLAJ and Organda have informed Bimantara that the government
\nplanned to provide an exchange rate of Rp 5,000 to the U.S.
\ndollar to import the components.<\/p>\n
They, however, stressed that the subsidized import scheme
\nshould be held by a special importer, so that the auto components
\nwould go directly to the public transportation operators and not
\nresold at higher prices.<\/p>\n
The public transportation operators have urged the government
\nto rescue the sector, which has been badly hit by the current
\neconomic crisis, caused by the plunge in the rupiah, which
\ntumbled to its lowest level of Rp 17,000 to the dollar in January
\nagainst the Rp 2,450 level in July. The rupiah closed at 10,400
\nagainst the greenback yesterday.<\/p>\n
The operators said that the crisis has not only sent auto
\ncomponent prices skyrocketing but also caused a scarcity. If the
\nproblem is not immediately solved, they feared that public
\ntransportation in Jakarta would come to a complete halt, which
\nwould be detrimental to many.<\/p>\n
Jongkie said that because of the vitality of public
\ntransportation, Bimantara was basically prepared to help the
\noperators.<\/p>\n
He stressed, however, that whoever takes the special
\nassignment should implement it based on a nonprofit orientation
\nand that the scheme should be transparent and open to scrutiny by
\nrelated offices.<\/p>\n
The Bimantara Group is controlled by President Soeharto's son
\nBambang Trihatmodjo. Its automotive division, in cooperation with
\nSouth Korea's Hyundai, has been aggressive in its operations
\nsince 1996.<\/p>\n
The current economic crisis, however, has slowed the
\noperation, in which it shelved its $400 million joint-venture
\nproject with Hyundai to establish a car and component
\nmanufacturing facility in West Java. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bimantara-denies-monopoly-allegation-1447893297",
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