Indonesian car plans close to completion<\/p>\n
Development of an Indonesian national car could get the go-
\nahead within weeks according to sources in Australia.<\/p>\n
Although the plans for the Maleo remain unconfirmed, industry
\nsources suggest the Indonesian government has been hosting key
\nAustralian component suppliers and showing them several potential
\nfactory sites around Jakarta.<\/p>\n
One delegation included senior officials from the Orbital
\nEngine Company, the Perth based two stroke technology experts.
\nThe delegation visited several engineering facilities to assess
\nthe capacity and capability of local component makers.<\/p>\n
These visits indicate the project has received official
\nsanction, and its financing, up to now the greatest threat to its
\nviability, has been assured.<\/p>\n
It is also unclear who will make decisions regarding the
\nactual content of the vehicle in terms of specific components and
\nfeatures.<\/p>\n
The Australian visits to Indonesia follow a high-level
\nIndonesian technical delegation, comprising engineers and
\nproduction specialists, which toured suppliers and an engineering
\ncenter in Australia last month.<\/p>\n
Sources said contracts with relevant companies are likely to
\nbe signed within weeks and an official announcement of the
\nproject is expected towards the end of next month.<\/p>\n
The Maleo is expected to be engineered in Melbourne and could
\nuse a state of the art mechanical package, as well as tap into
\nAustralia's growing high technology automobile component
\nindustry.<\/p>\n
The Indonesian side of the project is also shrouded in
\nsecrecy, but the announcement of the plan is expected to involve
\nthe Minister for Science and Technology, B.J. Habibie, and Hutomo
\nMandala Putra's Humpuss group.<\/p>\n
Dubbed the \"Habibie Volkswagen\" in some industry circles, the
\nMaleo is aimed at putting Indonesia on wheels in a similar manner
\nto Malaysia's success with the Proton.<\/p>\n
The Humpuss Group is said to be working on a deal with Korean
\ncar maker Kia on a project called \"Timor\".<\/p>\n
Government and car industry sources say Habibie has signed
\ncontracts with Australian firms to develop the car. These are
\nsaid to be worth between $95 million and $120 million.<\/p>\n
The Maleo will be low cost, about the size of a Toyota
\nCorolla, have a small engine and is intended for export as well
\nas domestic sales. The name Maleo comes from a small indigenous
\nIndonesian bird.<\/p>\n
Production will initially peak at only 30,000 units annually,
\nthough the plan allows for escalation to 100,000 units a year.<\/p>\n
The design is yet to be signed off, so the production date of
\nlate 1998 seems doubtful at present. However, if existing
\noff-the-shelf technology is adopted the development period could
\nbe considerably shortened.<\/p>\n
The most likely location for the Maleo factory is thought to
\nbe Cikampek, outside of Jakarta.<\/p>\n
Sources in Australia have suggested the project aims for 60
\npercent local content eventually, with the remaining parts coming
\nfrom Australia. However, this will require a significant
\ninvestment by component makers in Indonesian facilities before
\nanywhere close to this level of local content could be attained.<\/p>\n
Industry sources say bigger suppliers such as those involved
\nin fuel, electronics and other components could be close to
\ndeciding on establishing Indonesian-based off-shoots in order to
\nsupply the Maleo project.<\/p>\n
Initially, Indonesia looked to Rover Cars of Britain for help.
\nApparently Rover was later rebuffed after misunderstandings
\ndeveloped regarding control of the project.<\/p>\n
The success of the Maleo project could lead to other design
\nand component export orders for Australia from other Southeast
\nAsian countries eager to gain independence from Japanese and
\nEuropean automotive technology and designs.<\/p>\n
Another Malaysian car could be the first of many such orders,
\naccording to one industry source.<\/p>\n
Habibie is known to savor making bold technological strides,
\nsuch as his creation of the Indonesian aircraft industry.<\/p>",
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