Government plans to revive national car program<\/p>\n
JAKARTA (JP): The government said on Monday that it was
\ndetermined to revive the now defunct and much criticized national
\ncar program, which in the past was infested with nepotism and
\ncollusion.<\/p>\n
Minister of Trade and Industry Rahardi Ramelan said a measure
\nregarding the development of locally produced vehicles would be
\nincorporated in the automotive policy currently being drafted by
\nthe government.<\/p>\n
\"We are looking at several companies which have already
\ndeveloped their own automobile brands,\" Rahardi told reporters
\nafter a seminar on the automotive industry.<\/p>\n
The companies being considered for the program include PT
\nTimor Putra Nasional, which in the past received harsh criticism
\nfor the favorable treatment it received from the government.<\/p>\n
Until early 1998, Timor was the sole recipient of tax
\nincentives to import the Timor \"national\" car from South Korea.
\nThese tax incentives meant Timor's production costs were 60
\npercent lower than its competitors.<\/p>\n
Favoritism toward Timor, which was controlled by then
\npresident Soeharto's son Hutomo Mandala Putra, led the World
\nTrade Organization to force Indonesia to discard its automotive
\npolicy, which gave tax incentives on the basis of the local
\ncontent of automobiles.<\/p>\n
Rahardi also said that PT Pakarya Industri, a holding company
\nfor 10 strategic industries formerly under the now-dissolved
\nManagement Board of Strategic Industries, was being looked at for
\nthe national car program. The board was chaired by President B.J.
\nHabibie when he was the state minister of research and
\ntechnology.<\/p>\n
In cooperation with Australia's Millard Design and Orbital
\nEngine Company, the company developed the Maleo sedan.<\/p>\n
Before the sweeping economic crisis hit in mid-1997, it was
\nanticipated that the Maleo would become Indonesia's second
\n\"national car\" after the Timor sedan.<\/p>\n
Rahardi also mentioned Bakrie Group's PT Bakrie Motor, which
\nlaunched the prototype of its multipurpose van in 1997, as a
\npossibility for the program.<\/p>\n
Another possibility, according to Rahardi, was PT Texmaco
\nPerkasa Engineering of the integrated textile producer Texmaco
\nGroup, which plans to launch its Perkasa truck in February.<\/p>\n
State-owned fertilizer producer, PT Pupuk Kaltim, which has
\nmanufactured heavy-duty trucks, would be Texmaco's partner in the
\nprogram.<\/p>\n
Rahardi said that he would meet with the five companies for
\nfurther discussions about the national car program before making
\nany decisions.<\/p>\n
He added that he did not know yet if the companies would
\nreceive fiscal incentives as Timor did. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-plans-to-revive-national-car-program-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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