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)