Indomobil has not applied for 'Porche car permits'

Indomobil has not applied for 'Porche car permits'

JAKARTA (JP): The government has not yet received an
application from the Indomobil Group to assemble Porche sports
cars, a senior official said yesterday.

Effendi Sudarsono, the director general for metal-based,
machinery and chemical industries, said yesterday his office had
not received the group's application to assemble the luxury
Porche cars.

"We have not heard of Indomobil's plan to assemble Porches
here, " he told reporters after the 1996 Automotive Engineering
Exhibition's official opening.

There are 338 companies from 24 countries, including Malaysia,
Japan, Australia, Germany and South Korea, at the show. It was
also supported by local automobile makers such as PT Kramayudha
Tiga Berlian Motors, PT Timor Putra Nasional and PT Indomobil
Group.

Effendi refused to comment when asked if Indomobil's plan to
assemble Porche cars was acceptable.

"At the moment, we try to avoid letting luxury cars into
Indonesian market, except those used by diplomatic corps," he
said, adding that the government had no a specific rule to
restrict the production of luxury vehicles, such as Porches.

Indomobil Group president Soebronto Laras announced yesterday
his company had been appointed by Porche of Germany to assemble
its 2-plus-2 coupe sports cars.

"The Porche team is here to discuss all preparations required
including the amount of investment, the volume of production and
the location of assembly," he said.

Soebronto said arrangements would take about 10 months,
including the establishment of press-mold machines.

"If we could assemble Porches here, Indonesia would be the
first in Asia to assemble Porches, because other countries like
Malaysia and China are just importing the cars," he said.

Effendi said he doubted the car would be widely purchased by
Indonesians. He warned companies about the high costs of
manufacturing luxury cars.

"Well, Porche is a very sophisticated car, not to mention its
expensive, which will require a large amount of funds to
manufacture while people who would buy it are very limited," he
said.

But Soebronto, without disclosing the investment, said the
Porche project would not be too expensive.

"We will only assemble the car, besides Indomobil has already
established an assembly plant," he said.

Indomobil assembles Suzuki, Mazda, Nissan, Volvo, SSangyong,
Audi and Volkswagen vehicles. The last three brands are scheduled
to be launched here early next year.

Soebronto was confident the car, estimated to cost Rp 400
million (around US$168,000), would be purchased by middle-income
and rich people in local and regional markets.

"We are certain of the market for Porches in Asian countries
including Japan because the car will be modified for right-hand
drive," he said. (04)