Habibie to raise funds from public for car project

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)