Minister again defends national automotive policy<\/p>\n
JAKARTA (JP): Minister of Trade and Industry Tunky Ariwibowo
\nhas again defended the controversial \"national car\" policy,
\nsaying that the pioneer status given to PT Timor Putra National
\nis a breakthrough for the future of the automotive industry.<\/p>\n
Tunky said that the pioneer status, which will provide special
\ntax incentives to Timor Putra, was introduced to revitalize the
\nstagnant domestic automotive industry.<\/p>\n
\"The automotive industry has been developed for more than 20
\nyears here. But as you see, the progress has not been
\nsatisfactory,\" he said in replying to a question raised at The
\nIndonesia Summit yesterday.<\/p>\n
He said that certain local companies might have met the
\ncriteria to receive the pioneer status: \"but for the time being
\nwe would see only one company.<\/p>\n
\"This policy will remain for three years because we want to
\nsee the progress of this company (Timor Putra), how it is
\nresponding to this policy and how it is making progress,\" he
\nsaid.<\/p>\n
Tunky said that the three-year special treatment is also
\nneeded to find out if there any problems arise during the
\nimplantation of the new car policy.<\/p>\n
In February, the government granted pioneer status to Timor
\nPutra, owned by President Soeharto's youngest son Hutomo Mandala
\nPutra, to produce the so-called national car with Kia Motors of
\nSouth Korea.<\/p>\n
The pioneer status would allow Timor Putra to receive a series
\nof tax breaks including the exemption from import duties and the
\nluxury tax sales. The tax incentives will enable the company to
\nsell its cars at half the price of Japanese cars of the same
\nclass (with 1,600 cc engine).<\/p>\n
Sedans are normally subject to 100 to 200 percent import
\nduties and luxury tax rates of 25 to 35 percent.<\/p>\n
According to the new automotive policy, local components used
\nby automobile companies which have been granted pioneer status
\nmust be at 20 percent of the whole car by the end of the first
\nyear of production, 40 percent by the end of the second year and
\n60 percent by the end of the third years.<\/p>\n
The Japanese auto industry has urged Indonesia to reconsider
\nits policy on the national car project, describing it as an
\n\"international concern\". (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/minister-again-defends-national-automotive-policy-1447893297",
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