Australia set to help with 'people's car'

Australia set to help with 'people's car'

JAKARTA (JP): Australian automotive suppliers are interested
in participating in Indonesia's low-cost "people's car" project,
which is expected to reach the road by 1997.

The visiting Australian Minister for Industry, Science and
Technology Senator Peter Cook said yesterday that Australian
automotive suppliers could provide competitive components for the
inexpensive cars.

"Australia is the site of high quality and new technology in
automotive manufacture and we believe we can provide competitive
components for such a car," Cook said.

Cook, who is due to leave Jakarta today after leading an
Australian automotive delegation on a four-day visit here, said a
number of Australian businessmen would stay here a bit longer for
further talks with their Indonesian counterparts on possible
cooperation on the project.

"The head contractors, associated with the production of the
vehicles, are looking at what Australian inputs might be... Thus,
it is necessary to get down to the details, about what is needed,
what Australia can supply," Cook said.

The people's car, which is being developed by the state
aircraft manufacturer PT IPTN in cooperation with the British-
based car manufacturer Rover, will be the cheapest sedan in
Indonesia, at about Rp 15 million (US$6,700) each.

On Monday, State Minister for Research and Technology B.J.
Habibie, who is also president of IPTN, said Australia could
become involved in the people's car project.

When speaking at a hearing with the Technology and Education
Commission of the House of Representatives last September,
Habibie noted that all of the car's components, including its
engine, will be produced locally.

Investment

Cook said that Australian automotive companies are pursuing
direct investment opportunities in the automotive industry here
to help reduce Indonesia's dependency on imported components,
especially from Japan.

Echoing Cook's views, the president of the Australian
Federation of Automotive Product Manufacturers, John Moulding,
said recent strong appreciation of the Japanese yen against both
Indonesian and Australian currencies did open up considerable
doors for interaction between the two countries' automotive
industries.

Cook said the Indonesian government as well as the country's
powerful car assemblers, including Astra Motor, Indomobil and
Krama Yudha Tiga Berlian, had indicated their support for the
type of diversity.

"Indonesian is to develop its local industry and to improve
the degree of independence from major producers, in this case
from Japan. And therefore they would develop a strong industrial
base," Cook said.

During his visit here, Cook also met with Coordinating
Minister of Industry and Trade Hartarto, Minister of Industry
Tunky Ariwibowo and State Minister of National Development
Planning Ginandjar Kartasasmita. (rid)