Car makers should use local content
Car makers should use local content
JAKARTA (JP): President Soeharto suggested yesterday that
Japanese auto manufacturers increase local components in their
cars produced in Indonesia to maintain their market share in the
country.
"If the Japanese auto makers meet with local content
requirements, they will continue to secure their market
opportunities," Soeharto was quoted by the chairman of a Japanese
parliamentary delegation, Taku Yamasaki, as saying.
The delegation, consisting of members of the Indonesia-Japan
parliamentary body for bilateral cooperation, made a courtesy
call on President Soeharto at Merdeka Palace yesterday.
The delegation conveyed a letter from Japanese Prime Minister
Ryutaro Hashimoto and documents concerning results of the recent
G-7 meeting in France.
Yamasaki noted that the delegation had expressed objections to
Indonesia's national car program and asked the government to
respect prevailing international trade rules, especially in its
national car policy.
The government has granted car maker PT Timor Putra Nasional,
owned by Soeharto's youngest son Hutomo Mandala Putra, tariff and
tax breaks to produce a "national car" in collaboration with Kia
Motor Corp. of South Korea.
Because of its policy, the government has been accused by
Japan, the United States and the European Union of breaching free
trade principles under the World Trade Organization.
To appease the protesting parties, the government decided to
exempt the luxury tax on 1,600cc and smaller cars and station
wagons -- in addition to jeeps, minibuses, vans and pick-up
trucks produced in Indonesia -- if more than 60 percent of their
components were locally made.
Meanwhile, Timor Putra said that its Timor car -- deemed to be
Indonesia's "national car" -- will be launched simultaneously at
22 shopping malls and 10 auto showrooms in Greater Jakarta next
Monday.
Minister of Industry and Trade Tunky Ariwibowo is scheduled to
officially launch the car at the Sarinah shopping center on Jl.
Thamrin, Central Jakarta. Other malls to showcase the Timor car
include Blok M Plaza, Plaza Indonesia, Pondok Indah Mall (all in
Jakarta), along with Bintaro Plaza and Metropolitan Plaza in
Tangerang, West Java.
A spokesman for Timor Putra, Mochamad Ilham, told The Jakarta
Post yesterday that the company is limiting its auto shows in
Greater Jakarta because for the first stage, it will cater to
customer demand in that area only.
He noted that the company has also appointed 10 dealers to
market Timor cars along with after-sale services. He declined,
however, to name them.
"The most important thing is that they must sell Timor cars
only. They are not allowed to sell other cars," Ilham said,
adding that Timor cars will be sold at Rp 35 million (on the
road).
He said 54 Timor cars have arrived from South Korea for the
launching purposes, while those for commercial purposes have not
yet arrived.
Timor Putra decided to assemble the Timor car in South Korea
after it failed to find local existing assembly plants to
assemble the cars here. (rid)
JAKARTA (JP): President Soeharto suggested yesterday that
Japanese auto manufacturers increase local components in their
cars produced in Indonesia to maintain their market share in the
country.
"If the Japanese auto makers meet with local content
requirements, they will continue to secure their market
opportunities," Soeharto was quoted by the chairman of a Japanese
parliamentary delegation, Taku Yamasaki, as saying.
The delegation, consisting of members of the Indonesia-Japan
parliamentary body for bilateral cooperation, made a courtesy
call on President Soeharto at Merdeka Palace yesterday.
The delegation conveyed a letter from Japanese Prime Minister
Ryutaro Hashimoto and documents concerning results of the recent
G-7 meeting in France.
Yamasaki noted that the delegation had expressed objections to
Indonesia's national car program and asked the government to
respect prevailing international trade rules, especially in its
national car policy.
The government has granted car maker PT Timor Putra Nasional,
owned by Soeharto's youngest son Hutomo Mandala Putra, tariff and
tax breaks to produce a "national car" in collaboration with Kia
Motor Corp. of South Korea.
Because of its policy, the government has been accused by
Japan, the United States and the European Union of breaching free
trade principles under the World Trade Organization.
To appease the protesting parties, the government decided to
exempt the luxury tax on 1,600cc and smaller cars and station
wagons -- in addition to jeeps, minibuses, vans and pick-up
trucks produced in Indonesia -- if more than 60 percent of their
components were locally made.
Meanwhile, Timor Putra said that its Timor car -- deemed to be
Indonesia's "national car" -- will be launched simultaneously at
22 shopping malls and 10 auto showrooms in Greater Jakarta next
Monday.
Minister of Industry and Trade Tunky Ariwibowo is scheduled to
officially launch the car at the Sarinah shopping center on Jl.
Thamrin, Central Jakarta. Other malls to showcase the Timor car
include Blok M Plaza, Plaza Indonesia, Pondok Indah Mall (all in
Jakarta), along with Bintaro Plaza and Metropolitan Plaza in
Tangerang, West Java.
A spokesman for Timor Putra, Mochamad Ilham, told The Jakarta
Post yesterday that the company is limiting its auto shows in
Greater Jakarta because for the first stage, it will cater to
customer demand in that area only.
He noted that the company has also appointed 10 dealers to
market Timor cars along with after-sale services. He declined,
however, to name them.
"The most important thing is that they must sell Timor cars
only. They are not allowed to sell other cars," Ilham said,
adding that Timor cars will be sold at Rp 35 million (on the
road).
He said 54 Timor cars have arrived from South Korea for the
launching purposes, while those for commercial purposes have not
yet arrived.
Timor Putra decided to assemble the Timor car in South Korea
after it failed to find local existing assembly plants to
assemble the cars here. (rid)