'Car prices could drop following implementation of AFTA'<\/p>\n
Adianto P.Simamora, The Jakarta Post, Jakarta<\/p>\n
Car prices on the domestic market could drop this year
\nfollowing the implementation of the ASEAN free trade area scheme
\n(AFTA), the country's car association said Thursday.<\/p>\n
Association of Indonesian Automotive Manufacturers chairman
\nBambang Trisulo said car producers and traders were now
\ndiscussing the possibility.<\/p>\n
\"I think there is a room to cut car prices this year,\" Bambang
\ntold The Jakarta Post.<\/p>\n
He noted however that prices would not drop in the near future
\nas traders and manufacturers would not make a decision until they
\nfelt sure that the reduction of tariffs in line with AFTA would
\nmake it feasible.<\/p>\n
The traders and manufacturers could wait for six months before
\ncutting prices, he said.<\/p>\n
AFTA came into effect in six founding member countries of the
\nAssociation of Southeast Asian Nations (ASEAN) on Jan. 1.
\nSpecifically Indonesia, Singapore, Malaysia, the Philippines,
\nThailand and Brunei Darussalam.<\/p>\n
In line with AFTA, all but a few import tariffs should be
\nreduced to between zero percent to five percent.<\/p>\n
Indonesia, together with Thailand and the Philippines have
\nagreed to include automotive products in the list of products, on
\nwhich import tariffs would be reduced to between zero and five
\npercent this year.<\/p>\n
Consequently, cars imported from these countries could be sold
\nat cheaper prices in Indonesia, while Indonesia-made cars could
\nsell cheaper overseas.<\/p>\n
Malaysia had asked for a delay until 2005 for its automotive
\nsector to protect its national car maker Perusahaan Nasional
\nBhd., or Proton.<\/p>\n
As such, Malaysian cars would be exempt from low import
\ntariffs.<\/p>\n
Bambang said that car prices did not just depend on low import
\ntariffs.<\/p>\n
\"There are other factors that will affect prices, including
\nfuel and electricity prices, which both impact on production
\ncosts.<\/p>\n
\"The country's continued political uncertainty and rupiah
\nvolatility could also discourage producers and traders from
\ncutting prices,\" Bambang said.<\/p>\n
Meanwhile, PT Toyota Astra-Motor spokesman Hendrayadi said car
\nprices would depend on both demand and competition.<\/p>\n
\"So far, we have no plans to cut the prices for cars this
\nyear,\" he told The Post.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/car-prices-could-drop-following-implementation-of-afta-1447893297",
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"sponsor": "Okusi Associates",
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