Bimantara denies monopoly allegation
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)