Auto expo goes ahead despite political showdown

Auto expo goes ahead despite political showdown

By Damar Harsanto

JAKARTA (JP): While the country anxiously watches the
escalating political showdown between President Abdurrahman Wahid
and legislators, hundreds of automotive companies will proudly
exhibit their products for car aficionados at Gaikindo's 11th
Auto Expo 2001 from Saturday to next Sunday.

The venue is the Jakarta Convention Center, which is only
meters away from the legislative building, which has been the
focal point for many demonstrations both in support of and
against President Abdurrahman and where the legislators are
preparing to impeach the President.

Placing worries aside, 125 automotive companies have confirmed
their participation in the expo, organizers said.

"Yes, we are worried by the fact that all can go wrong, but
all members have confirmed to participate, except Timor and
Mercedes-Benz. Just pray that everything will run peacefully," F.
Suseno, coordinator for the Gaikindo exhibition told The Jakarta
Post.

Suseno said Minister of Industry and Trade Luhut B. Pandjaitan
is confirmed to open the exhibition, which is held by the
Association of Indonesian Automotive Industries (Gaikindo).

Weeks before the exhibition, many automakers were busy
introducing their latest car models, that will be displayed
during the expo.

French-Japanese automaker Nissan Motor Co Ltd introduced the
Nissan Sentra and the Nissan X-trail models.

"We're eager to be back in Indonesia, not for one or two
years, but for the long term as Indonesia is a promising market,"
visiting Nissan president and chief executive officer Carlos
Ghosn said.

Nissan is not alone as French automotive giant Renault S.A.,
which also owns a 36.8 percent stake in Nissan, said last month
that it was set to reenter the country's auto market.

Renault launched four new models on Friday, that is Kangoo,
Scenic, Clio and Laguna.

"We have decided to start now. We are committed for the long
term as we think Indonesia is among the key markets in the Asia
Pacific region," Christine Lavoie-Gagnon, corporate
communications manager of Renault Group Liaison Office, told The
Post

Meanwhile, American automaker General Motors Corp has also
unveiled two sports cars -- the Subaru Impreza WRX and the Subaru
Forester.

"We've studied the opportunities that are available here and
we think it is the right time for us to enter the country's auto
market now," Geoff Bedford, director of sales operations for
General Motors Asia Pacific said.

The Subaru cars are made by the automotive division of the
Japanese firm Fuji Heavy Industries which is now 20 percent owned
by General Motors following a $1.4 billion share acquisition last
year.

Local automakers are no less eager.

PT Toyota Astra Motor introduced on Thursday its new Corolla
Altis model to boost its presence in the local automotive market.
Meanwhile, PT Astra Daihatsu Motor unveiled the following day its
Daihatsu Ceria and All-EFI Taruna.

The rising political tension between the legislators and the
President did not seem to discourage the automakers from taking
part in the expo.

Gaikindo's chairman Bambang Trisulo commented that many
automakers had long term plans to penetrate or strengthen their
position in the country's auto market.

"Of course, Indonesia's great population makes it a potential
market target for both the international and local auto industry.
But, we cannot predict what will be the outcome of the current
heated political climate," Bambang said.

Car makers opted for going ahead with their plans despite
possible risks, as they did not wish to delay their entry any
longer, he said.

"They must dare to take the risks as the moves are closely
related to their business survival," Bambang said.

Bambang also said the automakers were determined to
participate in the exhibition amid the unfavorable climate
because they were convinced that the current political tension
would soon abate.

Automotive observer Soehari Sargo said most of the automakers
who aggressively launched their products lately were still in the
first phase of building their marketing networks.

"What they've done up until now, is just to strengthen their
marketing networks," Soehari said.

"They may have plans to invest in the country but they will
wait until there are market responses to their products and the
country's investment climate is more favorable," he said.

Gaikindo has projected national car sales at 280,000 units
this year, as against more than 300,000 last year. (03)