Bakrie to launch multipurpose vans in December

JAKARTA (JP): PT Bakrie Motor of the Bakrie Group plans to launch its own multi-purpose vans in December, the group chairman said yesterday.

Aburizal Bakrie said the vans would have no less than 40 percent local content in the first year of production.

"All tests on our prototypes will be completed by the end of next month and commercial production will start by November," Aburizal told vendors here yesterday.

In the first year, Bakrie Motor will produce some 15,000 vans using three engine types, namely 8-valve, 1,900cc engine; 16- valve, 2,000cc engine; and 2,000cc turbo intercooler engine.

Bakrie vans, combining British and French technology, will be launched at the Jakarta Convention Center on Dec. 13 and 14 for invited guests and on Dec. 14 for the public.

Aburizal would not reveal the prices of the vans. But he said earlier the vans would be sold for between Rp 38 million (US$15,600) and Rp 60 million, depending on the specifications requested by buyers.

He said he had spent US$30 million to develop Bakrie vans, including the designing, engineering and production of engines, chassis, body and prototypes.

The designing, engineering and production of the engines has been assigned to Peugeot-Citroen Moteur of France; the chassis and body to Creative Automotive Design Ltd of Britain; and the production of the prototypes to Creative Manufacturing Systems Ltd of Britain.

A number of Bakrie prototypes are undergoing a series of tests at Leyland Technical Center in Britain.

Aburizal said Bakrie vans would be assembled at PT Ningz Pacific Motor's assembling facilities in Serang, West Java.

Bakrie Motor had acquired a 45 percent stake of Ningz Pacific for Rp 120 billion ($49.3 million).

Bakrie Motor is currently building a stamping plant in Serang, with a total investment of $120 million.

Aburizal said a number of domestic and foreign banks were financing his car project. However, he refused to name them, saying "Wait until we sign the loan agreement later this month in Bali."

Bakrie is one of several newcomers to the Indonesian automotive industry challenging the domination of the established conglomerates like Astra and Indomobil. The latter have dominated the market by producing and assembling Japanese cars.

Two other newcomers, PT Timor Putra Nasional and PT Citramobil Nasional, earlier entered the market with sedans that rely on South Korean technology.

Aburizal said he was determined to increase local components of Bakrie vans to 60 percent by the end of 1998, to qualify for duty and tax breaks from the government.

The chairman of the Association of Indonesian Auto Parts and Components Manufacturers, A. Safiun, said it would be very difficult for newcomers to reach local content of 60 percent in the second year.

He contended that the country's most popular van, Toyota Kijang, involved more than 50,000 people to reach the current local content of slightly over 40 percent.

"It must involve over 100,000 people to reach 60 percent local content in a car," Safiun said. (rid)