Carmakers object to premium gas ban for for big vehicles
Carmakers object to premium gas ban for for big vehicles
The Jakarta Post, Jakarta
State oil and gas company PT Pertamina's plan to issue a
regulation stopping cars with engines larger than 2,500cc from
using subsidized premium gasoline would only hurt the country's
auto industry, the Association of Indonesian Automotive
Manufacturers (Gaikindo) says.
"We reject the plan because it will affect the automotive
manufacturing industry, which has long contributed to the
country's economic growth," Gaikindo chairman Bambang Trisulo
said at the opening of the 13th Gaikindo Auto Expo at the Jakarta
Convention Center on Friday.
Bambang said the automotive industry had contributed Rp 23
trillion (US$2.35 billion) in taxes annually to state coffers.
Transportation eats up about 32 percent of total domestic
fuel consumption, which last year was measured at 62.3 million
kiloliters. Industry and power generation make up the remainder
of fuel usage.
The expo, which was officially opened by Vice President Jusuf
Kalla, showcased several fuel-efficient small-engine sedans,
along with the bigger, less-efficient SUV class and the gas-
guzzling luxury segment.
New small cars include the 1,800cc Ford Focus and the Suzuki
Swift mini-sedans that come in 1,300cc and 1,500cc models, along
with the bigger
PT Ford Motors Indonesia president Rick Baker said the Focus
would be a cost-competitive alternative to Toyota's Corolla Altis
or Honda's Civic.
"This car will be competitive in terms of price. Ford is
offering our Indonesian costumers a European-designed, German
engine-powered car that has supreme driving comfort," he said.
No price will be available for the car before its official
launch in September.
In the larger SUV segment, market leader PT Toyota Astra Motor
showed off the 2,700cc Fortuner to compete against the Nissan X-
Trail, the Honda CR-V and the newly launched Hyundai Tucson.
In the premium class, Mercedes-Benz unveiled its M Class,
which made a worldwide debut at the Detroit Motor Show earlier
this year, while Bentley produced its Flying Spur and Jaguar
released its X-type Estate.
The expo's most-expensive car: the Rolls Royce Phantom has a
price tag of about Rp 10 billion on the road.
Expecting about 200,000 visitors in the 10-day event, Gaikindo
remained upbeat that total car sales this year would meet the
association's target of 550,000 units, despite high global oil
prices and fuel shortages around the country.
Last year's sales reached 483,000 units, up 23 percent from
the 392,000 units sold in 2003.
Bambang said the positive outlook for the industry was
reflected in this year's first-quarter sales, which reached
149,000 units.
"In the next few months, car sales will likely average over
50,000 units per month although the rupiah is weakening against
the U.S. dollar and vehicle taxes are also higher," he said.