KIA to resume national car project in Indonesia<\/p>\n
SEOUL (JP): South Korea's KIA Motors Corp. agreed on Friday to
\nresume the stalled national car project from April after its
\nchairman met President Abdurrahman Wahid.<\/p>\n
The decision came after Abdurrahman visited the company's auto
\nplant in Hwasong, some 80 kilometers south of here, to talk with
\nHyundai-KIA Motors chairman Chung Mong-koo.<\/p>\n
\"As Presidents Kim Dae-jung and Wahid have agreed in principle
\nto start again the national car project, it will be resumed at
\nfull swing from April,\" Chung said in a press release.<\/p>\n
\"Kia will select an economic model that goes well with
\nIndonesia's economic situation and national mood,\" Chung was
\nquoted as telling Abdurrahman.<\/p>\n
Some 70 Indonesian officials and businessmen inspected
\nassembly lines, including those producing Sephia sedans which
\nJakarta has chosen for the project, while Abdurrahman held talks
\nwith Chung.<\/p>\n
Hyundai Motor Co., South Korea's largest auto manufacturer,
\ntook over KIA Motors in 1998 after the latter collapsed under
\nheavy debts.<\/p>\n
Abdurrahman expressed his hope that Hyundai-KIA Motors
\nautomotive firm would be able to realize his dream of creating an
\nefficient and low-cost automotive industry in Indonesia, but also
\nwarned that the government would not provide any privileges for
\nthe giant company.<\/p>\n
The government, Abdurrahman said, would create a conducive
\natmosphere for the industry to enable the company to produce
\ncheap vehicles.<\/p>\n
The President and First Lady Sinta Nuriyah received two
\nlimousines as gifts from the company. However, he only took home
\na miniature of the car. The cars will be sent to Jakarta soon.<\/p>\n
The government of former president Soeharto launched the
\nnational car project in 1996, a joint venture between KIA and
\nTimor Putra National (TPN), which was owned by Soeharto's son
\nHutomo \"Tommy\" Mandala Putra.<\/p>\n
A reliable source close to Hyundai-KIA Motors told The Jakarta
\nPost that Tommy failed to attend the meeting between Abdurrahman
\nand Chung on Friday and decided to leave Seoul before the
\nPresident's visit.<\/p>\n
The source said executives of the Korean company advised Tommy
\nnot to attend the meeting or make public statements due to the
\nsensitivity of the issue on both sides.<\/p>\n
\"Tommy has left Seoul this morning, as he does not want to
\ntrouble the company,\" said the source, who spoke on the condition
\nof anonymity.<\/p>\n
State Minister of Investment and State Enterprise Laksamana
\nSukardi, who accompanied Abdurrahman here, said it was much
\nbetter for the country's investment climate if Tommy was not
\ninvolved in the future joint venture because of his controversial
\nrole in the past.<\/p>\n
The minister said Tommy's company PT Timor Putra Nasional had
\nbeen controlled by the Indonesian Banking Restructuring Agency
\n(IBRA) following its failure to repay its debt. According to
\npress reports its bad debt reached at least Rp 3 trillion.<\/p>\n
\"It will be much better if the Hyundai-Kia Motor finds a new
\npartner,\" said Laksamana.<\/p>\n
According to Laksamana, Soeharto's decision to develop a
\nnational car project had badly tarnished the country's image as
\nthe government granted unfair privileges to the company,
\nincluding tax exemptions.<\/p>\n
Minister of Trade and Industry Yusuf Kalla said Tommy had
\ndirectly informed him on Thursday that he had given up his
\nbusiness with the Korean giant company.<\/p>\n
\"I met with Tommy yesterday, he said the next decision on the
\ncar project was fully up to the government,\" Yusuf said here.<\/p>\n
After the visit, Abdurrahman left for Bangkok, where he will
\nstay for two days to attend the United Nations Conference on
\nTrade and Development (UNCTAD).<\/p>\n
Leaders of the Association of South East Asian Nations
\n(ASEAN), UN Secretary General Kofi Annan and Japanese Prime
\nMinister Keizo Obuchi will be present at the conference. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kia-to-resume-national-car-project-in-indonesia-1447893297",
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