Bimantara, Hyundai join in car assembling plant<\/p>\n
JAKARTA (JP): PT Citra Mobil Nasional, a subsidiary of the
\nwell-diversified Bimantara Group, will establish a 200-hectare
\ncar assembling plant in Cikampek of West Java in cooperation with
\nHyundai Motor Company of South Korea.<\/p>\n
Citra Mobil's president, Jongkie D. Sugiarto, told journalists
\nafter reporting to President Soeharto here yesterday that Hyundai
\nMotor and a number of its vendors had confirmed to build
\nassembling facilities there.<\/p>\n
However, Jongkie did not give details of the project, saying
\nonly that his company was still working on the project's
\nfeasibility study.<\/p>\n
At yesterday's meeting with Soeharto at Merdeka Palace,
\nJongkie was accompanied by the President's second son Bambang
\nTrihatmodjo, who is also chief commissioner of the Bimantara
\nGroup, and Chung C. Young, chairman of the Hyundai Business
\nGroup.<\/p>\n
Citra Mobil presented two Hyundai Elantra sedans with 1500 cc
\nengines as well as 10 DOHC multi-point injection engines to
\nPresident Soeharto for his foundations to mark the launching of
\nthe company's first product.<\/p>\n
The company said in a statement that it assembled the Hyundai
\nElantra sedans at its assembling facilities in Bekasi, West Java,
\nwhich it took over from PT Zastam.<\/p>\n
Jongkie said Bimantara chose Hyundai as its partner in
\ndeveloping its automotive division because Hyundai had promised
\nto transfer its automotive technology to Indonesia by increasing
\nthe local content of the products.<\/p>\n
Concurring with Jongkie's argument, Chung said, "I think the
\nlevel of local contents in Indonesia's automotive industry is too
\nlow. So, we want to help develop the industry, in this case, by
\nbuilding an assembling plant here with a high degree of local
\ncontents. President Soeharto welcomes this idea."<\/p>\n
The presence of Hyundai sedans here will challenge the
\ndomination of Japan's cars in Indonesia's automotive market.
\nJapan-affiliated assembling companies in Indonesia control almost
\n95 percent of the local automotive market.<\/p>\n
Jongkie said his company plans to sell up to 1,500 Elantra
\nsedans on the local market this year and another 3,000 next year.<\/p>\n
Citra Mobil's marketing director, Poeng W.I. Lubis, said his
\ncompany had established car service outlets in a number of big
\ncities, including Bandung of West Java, Surabaya of East Java,
\nDenpasar of Bali, Bandar Lampung of Lampung and Medan of North
\nSumatra. For Jakarta alone, Poeng said, the company has provided
\n15 car service points in different places and spare parts in 22
\noutlets. (rid)<\/p>",
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