General Motors keen on Indonesia again<\/p>\n
SINGAPORE (Reuters): General Motors (GM) said yesterday it was
\nready to make new investments in Indonesia now President Soeharto
\nhad removed tax exemptions on Jakarta's national car project.<\/p>\n
The removal of the exemptions, part of a far-reaching
\nagreement with the International Monetary Fund (IMF) in return
\nfor a $43 billion rescue package, \"changes the competitive
\nenvironment dramatically,\" GM said in a statement.<\/p>\n
The announcement \"changes our attitude toward investment in
\nIndonesia\", said the statement from Donald T. Sullivan, president
\nof General Motors Asian and Pacific Operations.<\/p>\n
\"With the government's announcement that the national car
\nprogram is being rescinded, we now stand ready to...make further
\ninvestments, including the introduction of new products, as
\nmarket conditions become more favorable,\" he said.<\/p>\n
Sullivan gave no further details.<\/p>\n
The statement said GM had bought out its Indonesia joint
\nventure partner, PT Garmak Motors, which held a 40-percent stake
\nin General Motors Buana Indonesia (GMBI), earlier this week.<\/p>\n
Garmak Motors is controlled by Probosutedjo, Soeharto's half-
\nbrother.<\/p>\n
GMBI assembles and sells the Opel Blazer, a four-wheel drive
\nsports vehicle. It is not in direct competition to the Timor
\nnational car, a sedan, but GM has said previously the national
\ncar policy had affected its expansion plans.<\/p>\n
Sullivan said Indonesia needed to introduce further reforms.<\/p>\n
\"To attract more auto-related investment to Indonesia and to
\nmeet its tremendous growth potential, the government can further
\ndemonstrate its leadership by encouraging further trade
\nliberalization,\" he said.<\/p>\n
\"It is in Indonesia's best interests to attract world class
\nautomotive companies and suppliers and that requires open
\nmarkets,\" he said.<\/p>\n
Indonesia's national car project had drawn the ire of U.S. and
\nJapanese car makers who said it put them at a considerable
\ndisadvantage.<\/p>",
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"sponsor": "Okusi Associates",
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