Fri, 26 Mar 2010

TEMPO Interactive, Jakarta: Industry Department said it is planning to draft a legal basis to facilitate production and trade of efficient and affordable vehicles as Japanese automakers are said to have prepared business plans for cheap and green cars in Indonesia.

Four major corporations Daihatsu, Toyota, Suzuki, and Nissan according to Industry Minister MS Hidayat are seeking informations on market prospects which Hidayat said was “good”.

“I challenged them. Bring in the proposals, we will select them.” Hidayat said on Thursday after a meeting with Takayuki Kimura, Nissan's chief director in Indonesia.

Hidayat said Indonesia needs about 100,000 to 300,000 unit of this type of vehicles. The cars reportedly will sell for Rp70-80 million, with local content between 60 and 70 percent.

The plans lured the Industry Department to set up a special regulation for the industry which will include incentives, as Hidayat said the plans should be immediately executed to prevent influx of foreign products and deal with competition from the region's largest car industry base, Thailand.