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.