Bimantara denies monopoly allegation

JAKARTA (JP): PT Bimantara Cakra Nusa, the automotive division of the diversified Bimantara Group has denied reports that it would monopolize the import of public transportation auto components subsidized by the government.

Company president director Jongkie D. Sugiarto said in a statement yesterday that Bimantara never asked for the job, and that other parties, including the public transportation cooperatives should also be given the opportunities.

Jongkie acknowledged that Bimantara has been asked by the City Land Transportation Agency (DLLAJ) and Jakarta's Organization of Land Transportation Owners (Organda) to help in importing subsidized automotive components for the capital's public transportation operators.

DLLAJ and Organda have informed Bimantara that the government planned to provide an exchange rate of Rp 5,000 to the U.S. dollar to import the components.

They, however, stressed that the subsidized import scheme should be held by a special importer, so that the auto components would go directly to the public transportation operators and not resold at higher prices.

The public transportation operators have urged the government to rescue the sector, which has been badly hit by the current economic crisis, caused by the plunge in the rupiah, which tumbled to its lowest level of Rp 17,000 to the dollar in January against the Rp 2,450 level in July. The rupiah closed at 10,400 against the greenback yesterday.

The operators said that the crisis has not only sent auto component prices skyrocketing but also caused a scarcity. If the problem is not immediately solved, they feared that public transportation in Jakarta would come to a complete halt, which would be detrimental to many.

Jongkie said that because of the vitality of public transportation, Bimantara was basically prepared to help the operators.

He stressed, however, that whoever takes the special assignment should implement it based on a nonprofit orientation and that the scheme should be transparent and open to scrutiny by related offices.

The Bimantara Group is controlled by President Soeharto's son Bambang Trihatmodjo. Its automotive division, in cooperation with South Korea's Hyundai, has been aggressive in its operations since 1996.

The current economic crisis, however, has slowed the operation, in which it shelved its $400 million joint-venture project with Hyundai to establish a car and component manufacturing facility in West Java. (08)