Bimantara expects to get tax breaks
Bimantara expects to get tax breaks
JAKARTA (JP): PT Citramobil Nasional, an auto subsidiary of
publicly-listed PT Bimantara Citra, expects that the government
will grant it tax and tariff facilities before the launching of
its "national" cars later this month.
"We are waiting for a change in the government's position on
the national car program until the night of July 22, just before
we launch our Bimantara cars on July 23," Citramobil's president,
Jongkie D. Sugiarto, said yesterday.
The Bimantara cars to be launched on July 23 are Bimantara
Cakra, with a 1,500cc engine and Bimantara Nenggala, with a
1,600cc engine. Citramobil is developing the cars with the help
of Hyundai Motor Company of South Korea.
Jongkie noted that his company deserves to get tax and tariff
facilities, as it has met all the national car requirements set
by the government.
Under its national car policy, the government promises to
grant import duty and luxury sales tax exemptions to cars which
use Indonesian brand names, are produced by Indonesian companies
and developed with domestic technology, engineering and designs.
The government has appointed PT Timor Putra Nasional,
controlled by President Soeharto's youngest son, Hutomo Mandala
Putra, as a pioneer company to develop a national car with three-
year tax and tariff facilities.
Timor Putra plans to develop a 1,600cc sedan, under the Timor
brand name, in cooperation with another South Korean auto maker,
Kia Motor Corp.
Jongkie contended that there is no reason for the government
not to extend the same facilities to Citramobil, because it is
more ready to develop the national car than Timor Putra.
"Our Hyundai Elantra, which will become Bimantara Nenggala,
already has 17 percent local contents. We have our own assembling
plant along with after-sale services. Besides, our company,
Citramobil Nasional, is 100 percent owned by local businesses,"
Jongkie said.
Citramobil is 50 percent owned by Hutomo's elder brother,
Bambang Trihatmodjo, and 50 percent by PT Bimantara Cakra Nusa,
the automotive arm of Bimantara Citra, which is also controlled
by Bambang.
The government has stated that it would extend the tax and
tariff facilities only to one company at a time, meaning that it
will not extend such facilities to companies other than Timor
Putra within the next three years.
However, Minister of Industry and Trade Tunky Ariwibowo, who
vehemently defended the government's decision to extend the
facilities to one firm only, said at a recent hearing with the
House of Representatives that, within the next three years, he
might extend the same facilities to another company that had
submitted a proposal to develop a national car.
As Tunky did not disclose the name of the company, many have
speculated that it would be Citramobil, believed to be the only
company which has submitted a proposal on developing a national
car to Tunky's office.
Jongkie suggested that the government give an equal chance to
all auto manufacturers to develop national cars to anticipate the
growing demand for cars in the coming years.
"When I said `give us equal chances', I didn't mean Bimantara
only, but all auto makers," Jongkie told The Jakarta Post.
He added that even if the government opens doors for newcomers
to the national car program, there will be few companies which
can meet the government-set requirement. (rid)