IPTN working on design of Rp 15m `People's Car'

IPTN working on design of Rp 15m `People's Car'

JAKARTA (JP): The state aircraft manufacturer IPTN is
currently working on the design of an inexpensive car that will
sell at Rp 15 million ($7,100) each.

IPTN President B.J. Habibie, who is also the state minister of
research and technology, told a hearing with Commission X of the
House of Representatives (DPR) that Mobil Masyarakat (People's
Car), will be installed with a 1,600 cc engine designed by the
British-based car manufacturer, Rover.

However, he stressed that all of the car's components,
including its engine, will be produced locally.

"IPTN should soon complete the outline of the car and will
begin with the design of the prototype," he said.

Habibie said the aircraft company is only involved in the
design of the car. Actual production is expected to be carried
out by the automotive industry, he added.

Habibie has been calling for the streamlining of the national
car industry, to make it more efficient and strong enough to
compete with foreign manufacturers. His call, however, has
largely been ignored by the powerful local car manufacturers.

At Rp 15 million a piece, the MM -- if it actually
materializes -- will be the cheapest sedan on the Indonesian
market. Currently, that title is held by the Baby Boomers,
produced by Indomobil using a Mazda design, which retails at
around Rp 25 million.

Once completed, the project will be offered to the Association
of Indonesian Car Producers (Gaikindo), he said.

"Our objective is to produce cars which are designed and
produced by Indonesia's sons and daughters. All components and
spare-parts should be produced at home to make them affordable to
all layers of society," he said.

Habibie said that, ideally, the first MM cars should roll off
the assembly line next August when Indonesia marks the 50th
anniversary of its independence.

He added, however, that he is not to be rushed because there
is the risk that the car produced will be of poor quality.

Instead, he said production should begin in 1997 or 1998.
(rms)