Car makers should use local content<\/p>\n
JAKARTA (JP): President Soeharto suggested yesterday that
\nJapanese auto manufacturers increase local components in their
\ncars produced in Indonesia to maintain their market share in the
\ncountry.<\/p>\n
\"If the Japanese auto makers meet with local content
\nrequirements, they will continue to secure their market
\nopportunities,\" Soeharto was quoted by the chairman of a Japanese
\nparliamentary delegation, Taku Yamasaki, as saying.<\/p>\n
The delegation, consisting of members of the Indonesia-Japan
\nparliamentary body for bilateral cooperation, made a courtesy
\ncall on President Soeharto at Merdeka Palace yesterday.<\/p>\n
The delegation conveyed a letter from Japanese Prime Minister
\nRyutaro Hashimoto and documents concerning results of the recent
\nG-7 meeting in France.<\/p>\n
Yamasaki noted that the delegation had expressed objections to
\nIndonesia's national car program and asked the government to
\nrespect prevailing international trade rules, especially in its
\nnational car policy.<\/p>\n
The government has granted car maker PT Timor Putra Nasional,
\nowned by Soeharto's youngest son Hutomo Mandala Putra, tariff and
\ntax breaks to produce a \"national car\" in collaboration with Kia
\nMotor Corp. of South Korea.<\/p>\n
Because of its policy, the government has been accused by
\nJapan, the United States and the European Union of breaching free
\ntrade principles under the World Trade Organization.<\/p>\n
To appease the protesting parties, the government decided to
\nexempt the luxury tax on 1,600cc and smaller cars and station
\nwagons -- in addition to jeeps, minibuses, vans and pick-up
\ntrucks produced in Indonesia -- if more than 60 percent of their
\ncomponents were locally made.<\/p>\n
Meanwhile, Timor Putra said that its Timor car -- deemed to be
\nIndonesia's \"national car\" -- will be launched simultaneously at
\n22 shopping malls and 10 auto showrooms in Greater Jakarta next
\nMonday.<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo is scheduled to
\nofficially launch the car at the Sarinah shopping center on Jl.
\nThamrin, Central Jakarta. Other malls to showcase the Timor car
\ninclude Blok M Plaza, Plaza Indonesia, Pondok Indah Mall (all in
\nJakarta), along with Bintaro Plaza and Metropolitan Plaza in
\nTangerang, West Java.<\/p>\n
A spokesman for Timor Putra, Mochamad Ilham, told The Jakarta
\nPost yesterday that the company is limiting its auto shows in
\nGreater Jakarta because for the first stage, it will cater to
\ncustomer demand in that area only.<\/p>\n
He noted that the company has also appointed 10 dealers to
\nmarket Timor cars along with after-sale services. He declined,
\nhowever, to name them.<\/p>\n
\"The most important thing is that they must sell Timor cars
\nonly. They are not allowed to sell other cars,\" Ilham said,
\nadding that Timor cars will be sold at Rp 35 million (on the
\nroad).<\/p>\n
He said 54 Timor cars have arrived from South Korea for the
\nlaunching purposes, while those for commercial purposes have not
\nyet arrived.<\/p>\n
Timor Putra decided to assemble the Timor car in South Korea
\nafter it failed to find local existing assembly plants to
\nassemble the cars here. (rid)<\/p>",
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