Bimantara plans to launch new car this year: Jongkie

JAKARTA (JP): PT Citramobil Nasional, a subsidiary of Bimantara Citra group, is set to launch a new car this year amid stiff market competition.

President of the firm Jongkie D. Soegiarto said last week the firm would go ahead with the plan despite a workers' strike at the company's principal in South Korea.

"The strike in South Korea will not have a big impact on Citramobil Nasional," he said.

He declined to give details about the type and price of the planned new car.

The company has already produced the Bimantara Cakra and Nenggala sedans in cooperation with its Korean partner Hyundai.

He said the company managed to sell 1,100 Bimantara Cakra sedans and 1,000 Bimantara Nenggala cars last year.

He said his company projected selling at least 5,000 of each model in 1997.

He told The Jakarta Post earlier that Bimantara Citra and Hyundai would establish a car assembling plant in Purwakarta, West Java.

PT Bimantara Hyundai Indonesia, the joint venture, would invest around US$400 million (Rp 944 billion) for the construction of the plant.

He said the plant was expected to operate by the end of 1998 or early 1999.

The companies are expected to invest in the plant in Purwakarta either through a joint venture or technical assistance.

Jongkie said his firm would likely produce a commercial car as the commercial market has not been saturated yet.

He said a commercial car would certainly supplement the sedan car market.

He said there was a market for both sedan and commercial type cars in Indonesia.

By the end of last year, he said, the market share of commercial cars accounted for 60 percent while sedans accounted for 40 percent.

Bimantara Citra is a subsidiary of the Bimantara Citra, which is controlled by Bambang Trihatmodjo, President Soeharto's second son.

The business group which was founded in 1982, is a holding company with 26 subsidiaries. Among the 26 subsidiaries, the largest share of earnings is contributed by RCTI, the country's first private television station. (09)