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)