Indonesian car plans close to completion
Indonesian car plans close to completion
Development of an Indonesian national car could get the go- ahead within weeks according to sources in Australia.
Although the plans for the Maleo remain unconfirmed, industry sources suggest the Indonesian government has been hosting key Australian component suppliers and showing them several potential factory sites around Jakarta.
One delegation included senior officials from the Orbital Engine Company, the Perth based two stroke technology experts. The delegation visited several engineering facilities to assess the capacity and capability of local component makers.
These visits indicate the project has received official sanction, and its financing, up to now the greatest threat to its viability, has been assured.
It is also unclear who will make decisions regarding the actual content of the vehicle in terms of specific components and features.
The Australian visits to Indonesia follow a high-level Indonesian technical delegation, comprising engineers and production specialists, which toured suppliers and an engineering center in Australia last month.
Sources said contracts with relevant companies are likely to be signed within weeks and an official announcement of the project is expected towards the end of next month.
The Maleo is expected to be engineered in Melbourne and could use a state of the art mechanical package, as well as tap into Australia's growing high technology automobile component industry.
The Indonesian side of the project is also shrouded in secrecy, but the announcement of the plan is expected to involve the Minister for Science and Technology, B.J. Habibie, and Hutomo Mandala Putra's Humpuss group.
Dubbed the "Habibie Volkswagen" in some industry circles, the Maleo is aimed at putting Indonesia on wheels in a similar manner to Malaysia's success with the Proton.
The Humpuss Group is said to be working on a deal with Korean car maker Kia on a project called "Timor".
Government and car industry sources say Habibie has signed contracts with Australian firms to develop the car. These are said to be worth between $95 million and $120 million.
The Maleo will be low cost, about the size of a Toyota Corolla, have a small engine and is intended for export as well as domestic sales. The name Maleo comes from a small indigenous Indonesian bird.
Production will initially peak at only 30,000 units annually, though the plan allows for escalation to 100,000 units a year.
The design is yet to be signed off, so the production date of late 1998 seems doubtful at present. However, if existing off-the-shelf technology is adopted the development period could be considerably shortened.
The most likely location for the Maleo factory is thought to be Cikampek, outside of Jakarta.
Sources in Australia have suggested the project aims for 60 percent local content eventually, with the remaining parts coming from Australia. However, this will require a significant investment by component makers in Indonesian facilities before anywhere close to this level of local content could be attained.
Industry sources say bigger suppliers such as those involved in fuel, electronics and other components could be close to deciding on establishing Indonesian-based off-shoots in order to supply the Maleo project.
Initially, Indonesia looked to Rover Cars of Britain for help. Apparently Rover was later rebuffed after misunderstandings developed regarding control of the project.
The success of the Maleo project could lead to other design and component export orders for Australia from other Southeast Asian countries eager to gain independence from Japanese and European automotive technology and designs.
Another Malaysian car could be the first of many such orders, according to one industry source.
Habibie is known to savor making bold technological strides, such as his creation of the Indonesian aircraft industry.