Indonesia-Australia ties strengthen
Indonesia-Australia ties strengthen
By Alastair Doak
The Automotive ties between Indonesia and Australia are expected to strengthen significantly in the coming years.
The links will get stronger as the Indonesian car industry matures and starts to play a more significant role in the international plans of the multi-national carmakers that have already established a presence here.
Toyota, for example, is planing to export both vehicles and components from its Jakarta factories, with Australia a likely sales target.
The plan has been confirmed by Toyota Australia executives.
The executive vice president of Toyota Australia, John Conomos said: "Indonesia has proved to be a very efficient supplier and there may well be components that we could take from that country.
"Indonesia is keen for export. It is looking at Australia as part of its automotive plan.
"It is facing severe tariff down pressures. Therefore, as you face tariffs down every country must face export requirements."
Conomos said at this stage no specific deals with Indonesia had been signed.
However, he said that the next generation Kijang was being actively considered for sale in Australia.
At present the popular Toyota vehicle is seen as being too rudimentary for a mature market such as Australia, but the next vehicle, due later this decade, would be designed with exports in mind.
General Motors is also said to be planning closer ties between Indonesia and Australia.
General Motors, through its Australian Holden subsidiary, already has representatives of the Holden Engine Company based here.
General Motors wants to step up parts sharing and vehicle exports between the two countries.
The next generation Blazer due later this decade -- the present version of the large General Motors truck which went into Indonesian production about November and goes on sale early next year -- could be exported to right-hand drive markets such as Australia.
In turn, General Motor's Australian subsidiary, Holden, is likely to export a medium-size passenger car in kit form to Indonesia, where it will be assembled.
The Holden plan would involve around 5,000 cars a year.
Chrysler Corp, which is considering boosting its existing operation, is looking to buy a range of parts from Australian suppliers including an automatic gearbox.
Chrysler executives claim they might use the gearbox in its truck range such as the Dodge Ram, a pickup-style vehicle.
The United States carmaker has the option of building along side the Cherokee, which it already sells here, and the upcoming Grand Cherokee, one or more of the new vehicles it has just developed for right-hand drive markets.
Those vehicles are the Jeep Grand Cherokee 4WD wagon, Jeep Wrangler and the Chrysler Neon small car and the Chrysler Voyager people mover.
The Jeep Wrangler, a small entry-level 4WD in the classic World War II jeep mold and the Chrysler Neon, which is the same size as a Toyota Corolla, are the most likely candidates for assembly in Indonesia.
The upgraded Wrangler, which was unveiled at Tokyo Motor Show in October, now comes with an all-new interior that features passenger and driver-side air bags, as well as a more sophisticated mechanical package.
It now features coil spring suspension all round rather than the more basic leaf-spring system at the rear found on the superseded model.
Weather protection has also been improved with a new rubber sealing and soft-top design to keep the rain and wind out.
South Korean carmaker Daewoo and its local partner, Starsurya, also import engines from HEC in Melbourne for the Espero, which went into local production earlier this year.
Starsurya have indicated that they would like to import parts from Australia and may even buy into an Australian parts supply company as a way of getting ready access to high-technology hardware and know-how as it expands its automotive base in Indonesia.