City to order 2,000 Daewoo cars

JAKARTA (JP): The city administration plans to import some 2,000 cars, in completely-built-up (CBU) form, from South Korea's Daewoo company to replace many of the capital's ageing taxis.

Priyatmedi, head of the Jakarta chapter of the Organization of Land Transportation Owners (Organda), said the order to purchase the 1500cc Lanos was contingent upon the Ministry of Finance approving a huge discount on the import tariff.

The Ministry of Industry and Trade, and the Jakarta Land Transportation Agency (DLLAJ) had agreed that the cars be subject to only a five percent import tariff instead of the normal 65 percent, Priyatmedi told The Jakarta Post on Saturday.

The discount in import tariff should bring the selling price of the Lanos from around Rp 100 million to Rp 72 million, he said, adding that many existing taxi operators should find this affordable.

"I would buy 500 units myself at that price," said Priyatmedi, who is operational director of Silvera taxi company.

Only 16,000 of the 22,000 taxis registered in Jakarta are operating in the capital, with the remaining 6,000 failing to pass the roadworthiness test. (04)