Bimantara expects to get tax breaks<\/p>\n
JAKARTA (JP): PT Citramobil Nasional, an auto subsidiary of
\npublicly-listed PT Bimantara Citra, expects that the government
\nwill grant it tax and tariff facilities before the launching of
\nits "national" cars later this month.<\/p>\n
"We are waiting for a change in the government's position on
\nthe national car program until the night of July 22, just before
\nwe launch our Bimantara cars on July 23," Citramobil's president,
\nJongkie D. Sugiarto, said yesterday.<\/p>\n
The Bimantara cars to be launched on July 23 are Bimantara
\nCakra, with a 1,500cc engine and Bimantara Nenggala, with a
\n1,600cc engine. Citramobil is developing the cars with the help
\nof Hyundai Motor Company of South Korea.<\/p>\n
Jongkie noted that his company deserves to get tax and tariff
\nfacilities, as it has met all the national car requirements set
\nby the government.<\/p>\n
Under its national car policy, the government promises to
\ngrant import duty and luxury sales tax exemptions to cars which
\nuse Indonesian brand names, are produced by Indonesian companies
\nand developed with domestic technology, engineering and designs.<\/p>\n
The government has appointed PT Timor Putra Nasional,
\ncontrolled by President Soeharto's youngest son, Hutomo Mandala
\nPutra, as a pioneer company to develop a national car with three-
\nyear tax and tariff facilities.<\/p>\n
Timor Putra plans to develop a 1,600cc sedan, under the Timor
\nbrand name, in cooperation with another South Korean auto maker,
\nKia Motor Corp.<\/p>\n
Jongkie contended that there is no reason for the government
\nnot to extend the same facilities to Citramobil, because it is
\nmore ready to develop the national car than Timor Putra.<\/p>\n
"Our Hyundai Elantra, which will become Bimantara Nenggala,
\nalready has 17 percent local contents. We have our own assembling
\nplant along with after-sale services. Besides, our company,
\nCitramobil Nasional, is 100 percent owned by local businesses,"
\nJongkie said.<\/p>\n
Citramobil is 50 percent owned by Hutomo's elder brother,
\nBambang Trihatmodjo, and 50 percent by PT Bimantara Cakra Nusa,
\nthe automotive arm of Bimantara Citra, which is also controlled
\nby Bambang.<\/p>\n
The government has stated that it would extend the tax and
\ntariff facilities only to one company at a time, meaning that it
\nwill not extend such facilities to companies other than Timor
\nPutra within the next three years.<\/p>\n
However, Minister of Industry and Trade Tunky Ariwibowo, who
\nvehemently defended the government's decision to extend the
\nfacilities to one firm only, said at a recent hearing with the
\nHouse of Representatives that, within the next three years, he
\nmight extend the same facilities to another company that had
\nsubmitted a proposal to develop a national car.<\/p>\n
As Tunky did not disclose the name of the company, many have
\nspeculated that it would be Citramobil, believed to be the only
\ncompany which has submitted a proposal on developing a national
\ncar to Tunky's office.<\/p>\n
Jongkie suggested that the government give an equal chance to
\nall auto manufacturers to develop national cars to anticipate the
\ngrowing demand for cars in the coming years.<\/p>\n
"When I said `give us equal chances', I didn't mean Bimantara
\nonly, but all auto makers," Jongkie told The Jakarta Post.<\/p>\n
He added that even if the government opens doors for newcomers
\nto the national car program, there will be few companies which
\ncan meet the government-set requirement. (rid)<\/p>",
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"sponsor": "Okusi Associates",
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