Habibie to raise funds from public for car project

JAKARTA (JP): PT Maleo, the developer of the Maleo "national car" Maleo, will float most of its shares to raise funds to develop the car, State Minister of Research and Technology B.J. Habibie said here yesterday.

Habibie, also chairman of the Management Board of Strategic Industries (BPIS) which is developing the car in cooperation with Australian design firm Millard Design, said the agency would only hold about 30 percent of PT Maleo.

"The other 70 percent will be offered to local component producers and national businessmen with an interest in the automotive industry," Habibie said after a monthly ministerial meeting.

Habibie had offered Maleo's shares to local auto parts producers at a nominal price of Rp 1 million (US$410) a unit. But the price was considered too expensive.

"That's our mistake. Now, we are considering cutting the price per unit," Habibie said.

Habibie has attracted criticism over the US$2 billion 130- seater jet project, whose finance is being raised from the public through PT Dua Satu Tiga Puluh.

To raise the funds, PT Dua Satu Tiga Puluh, with the help of government officials is selling shares.

Habibie said again that neither his agency nor the government would force local automotive vendors or assemblers to buy Maleo shares.

"It is not compulsory for automotive vendors to buy (Maleo shares). If they want to buy, they can. If not, it's okay, it's not a must," Habibie said.

He said the Maleo project was feasible and would therefore attract people in the industry to buy shares.

"When a project is feasible, the funds will come," Habibie said.

The small four-door Maleo sedan, designed by Millard Design, will be powered by a 1,200cc two-stroke three cylinder Orbital engine.

Reports said the Maleo sedan, Indonesia's second "national car" after the Timor sedan, would be launched after the general election.

But Habibie indicated yesterday that the launching of the prototype would be delayed until next year because of the privatization of PT Maleo.

Habibie said PT Maleo and PT Timor Putra Nasional, the producer of the Timor sedan, would cooperate closely to set up spare parts vendors.

"The BPIS will help any automotive firm wanting to increase the local content of their cars. In this case, Timor is determined to expedite that process, so it is appropriate for us to help them," Habibie said.

He said setting up component vendors here would help other car manufacturers, including assemblers of Japanese cars.

He described his vision of the future of the company to be set up as a holding company for Timor and Maleo, to be named PT Industri Mobil Indonesia (IMI).

"Like Toyota with Toyota Lexus, Toyota Corolla, and so forth, IMI will have IMI Timor, IMI Maleo, and other models designed and engineered by IMI," Habibie said.

Japan has taken Indonesia's "national" Timor car project to the dispute settlement body of the World Trade Organization in Geneva and a panel of judges is expected to be formed later this month to assess Japan's complaint. (rid)