Exposition features 36 imported cars<\/p>\n
JAKARTA (JP): The Indonesian Automotive Industry Association
\n(Gaikindo) launched the seventh annual automobile exposition at
\nthe Jakarta Hilton Convention Center here on Saturday.<\/p>\n
The exposition is showing 50 of the latest models of 12
\ndifferent makes of cars.<\/p>\n
The nine-day exhibition is promoting 36 costly imported cars
\nwith prices ranging from Rp 40 million (US$19,000) to Rp 250
\nmillion.<\/p>\n
An Opel Corsa with a 1200 cc engine, for example, is offered
\nat Rp 40 million, a Mitsubishi Pajero van with a V6 engine at Rp
\n150 million and a Jeep Cheeroke Limited van with a 190 horse
\npower engine at Rp 120 million.<\/p>\n
Under the June 1993 deregulation package, importers of
\nassembled cars must pay a 200-percent duty and a 100-percent
\nsurcharge on models which are not yet assembled in this country.<\/p>\n
In addition to those levies, domestic sales of cars are also
\nsubject to a 35-percent luxury tax and a 10-percent value added
\ntax.<\/p>\n
Despite the 1993 package, the Indonesian automotive industry
\nremains heavily protected by government regulations.<\/p>\n
Consequently, the prices for locally assembled cars remain
\ncostly for most Indonesians, whose average annual per capita
\nincome is $645.<\/p>\n
Analysts estimate that cars assembled in Indonesia cost three
\ntimes as much as those in the United States or Australia.<\/p>\n
The industry is often criticized by economists for not being
\nable to generate export earnings because they are operating
\ninefficiently.<\/p>\n
The automotive industry annually imports components worth
\nabout US$1.4 billion, while its average annual export earnings
\nhover around US$100 million.<\/p>\n
Most Indonesian automotive companies, however, deny that they
\nhave received privileges from the government.<\/p>\n
\"The regulations protect us from newcomers in the industry but
\nwe still must compete with each other,\" Herman Latif, the
\nchairman of Gaikindo, said in his speech at the opening of the
\nexpo on Saturday.<\/p>\n
Latif also claimed that vehicle producers' payments to the
\ngovernment in the form of taxes and duties reach about 60 percent
\nof their sales prices.<\/p>\n
Minister of Industry Tunky Ariwibowo said in a written address
\nread by Director General of Machinery, Basic Metal and Electronic
\nIndustries, Usman Effendi, that the automotive industry is
\nexpected to increase production to 1.5 million units by 1999 from
\n200,000 units last year. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exposition-features-36-imported-cars-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}