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)