Sutiyoso seeks loans for Texmaco to make buses<\/p>\n
JAKARTA (JP): The city administration is seeking soft loans to
\nbe channeled to Texmaco to enable the conglomerate to manufacture
\nbuses that will be purchased by the government as part of its
\npublic transportation rejuvenation program.<\/p>\n
Governor Sutiyoso told reporters at city hall on Friday that
\nhe would soon meet the Minister of Industry and Trade, Luhut
\nBinsar Pandjaitan, to discuss the possibility that the government
\nwould provide soft loans for the program.<\/p>\n
The rejuvenation program is estimated to cost Rp 1.56 trillion
\n(US$141,818).<\/p>\n
Under the program, the city administration plans to purchase
\nsome 2,000 Perkasa buses made by Texmaco, an integrated textile
\nand engineering conglomerate.<\/p>\n
However, the company had earlier announced that it wouldn't be
\nable to even start manufacturing the buses because no banks were
\nwilling to provide loans.<\/p>\n
The city has 5,411 large buses and 4,981 medium buses that are
\ncurrently operated by 14 bus companies.<\/p>\n
It plans to replace 3,181 buses, which have been in operation
\nfor the past nine years, while another 1,286 buses, which have
\nbeen in operation for the past seven years, would be replaced
\nnext year.<\/p>\n
The city administration had earlier planned to import buses
\nfrom China with prices ranging from Rp 160 million to Rp 250
\nmillion each, excluding 60 percent import tax.<\/p>\n
The governor demanded the lowering of the import tax because
\nit would be difficult for local bus companies to buy the buses.<\/p>\n
The central government announced that it could lower the tax
\nto 20 percent if the buses could be assembled by local companies.
\nBut many doubted that local companies would be able to assemble
\nthem due to the large number.<\/p>\n
The administration then canceled the plan to import the
\nChinese buses, earlier this year it turned to Texmaco, which
\nclaimed to have the capability to manufacture the buses.<\/p>\n
Sutiyoso said that the rejuvenation program seemed to have got
\nstuck as the plan to buy buses from PT Texmaco had to be halted
\ndue to loan problems.<\/p>\n
He said that the program should soon be materialized, because
\notherwise, in the next two years, the city public transportation
\nwould become "paralyzed" as it will have to impound thousands of
\nold buses due to their road unworthiness.<\/p>\n
Public transportation companies have also found it difficult
\nto obtain bank loans to purchase new buses.<\/p>\n
The City's Land Transportation Owners Association (Organda)
\nsaid banks refused to provide loans as they were afraid that
\ncompanies would not be able to return the loans due to the
\ncurrent low bus fares, which start from Rp 300 to Rp 2,700.<\/p>\n
The city administration earlier received an offer to buy
\npublic buses from Korea, but no deal has been made so far.<\/p>\n
Texmaco sought loans from Bank Mandiri last year amounting to
\nsome $60 million to finance the procurement of materials and
\ncomponents for buses and trucks ordered by the government for
\nmilitary and civilian use.<\/p>\n
The request, however, was turned down, apparently as Texmaco
\nstill owed around Rp 19 trillion to the Indonesian Bank
\nRestructuring Agency (IBRA).<\/p>\n
There was also an allegation that Texmaco had misappropriated
\nloans and that President Abdurrahman Wahid had ordered the
\nAttorney General Office not to investigate the case. (jun)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sutiyoso-seeks-loans-for-texmaco-to-make-buses-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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