Organda to purchase 20,000 Daewoo cars<\/p>\n
JAKARTA (JP): The Association of Land Transportation Owners
\n(Organda) signed a memorandum of understanding (MoU) on Tuesday
\nto purchase 20,000 cars from the ailing South Korea-based Daewoo
\nMotor Co., to replace aging taxis in the Greater Jakarta area.<\/p>\n
Chairman of Organda's Jakarta chapter Aip Sjarifuddin said
\nDaewoo would supply the 20,000 cars over a period of three years
\nwith the first batch of 8,000 vehicles due to arrive in the
\ncapital in February 2001.<\/p>\n
"We will import the 1,500 cc sedans in completely knock-down
\nform so as to reduce the price," Aip told journalists after the
\nceremony.<\/p>\n
He said the Ministry of Trade and Industry had committed
\nitself to lowering the import tax to 10 percent so that the
\nmarket price of each car would be around Rp 70,000,000
\n(US$7,368).<\/p>\n
"Under the MoU, Organda is required to purchase the cars and,
\nso far, some of the taxi operators in the Greater Jakarta area
\nhave agreed to purchase them," Aip said, while citing that the
\nlargest taxi operator in the capital, the Blue Bird Group, had
\nstated its intention of purchasing the vehicles.<\/p>\n
Aip and the governor of Chollabuk-do province in South Korea,
\nYou Jong-keun, signed the MoU, witnessed by Minister of Industry
\nand Trade Luhut Binsar Panjaitan and Jakarta Governor Sutiyoso at
\nthe ministry's office.<\/p>\n
The ailing Daewoo Motor Co., once dubbed the second largest
\nautomaker in South Korea, is suffering from mounting losses
\nresulting from a work stoppage on top of its already huge debts.
\nIt was declared bankrupt on Nov. 8.<\/p>\n
The importation of the cars, worth US$110 million, will be
\nundertaken by Chonbuk Trading Co.<\/p>\n
To assemble the cars, Aip said, the company would use the
\nassembly plant of PT KIA Timor Motor because Daewoo did not have
\nits own factory here.<\/p>\n
Aip explained that the city needed the cars because out of the
\n33,000 registered taxis, only 18,000 to 20,000 of them were
\nallowed on the streets while the rest had failed the vehicle road
\ntest.<\/p>\n
"Some of the ones operating are also not in good condition.
\nWith the current fare hike, we have to provide taxis which have
\npassed the requirements so as to improve service to the public,"
\nhe said. (dja)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/organda-to-purchase-20000-daewoo-cars-1447893297",
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"sponsor": "Okusi Associates",
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