Indonesian Political, Business & Finance News

Jakarta starts operating Proton cabs

Jakarta starts operating Proton cabs

JAKARTA (JP): A local taxi company began operating 200 Proton cabs imported from Malaysia yesterday, the first batch of 1,000 such vehicles designated for Jakarta and its surrounding areas this year.

The taxis, licensed under the name of Citra Taxi, were officially launched by State Minister of Research and Technology B.J. Habibie and the president of PT Citra Lamtoro Gung Persada, who is the majority shareholder in taxi company PT Citra Transpor Nusantara.

PT Citra Lamtoro Gung, which is owned by President Soeharto's eldest daughter Siti Hardiyanti Rukmana, is the sole agent of Proton cars here.

The importing of Proton vehicles is part of a deal between Indonesia and Malaysia under which Kuala Lumpur will buy six Indonesian-made CN-235 military transport aircraft.

Habibie and Malaysia's Defense Minister Najib Abdul Razak signed the US$224 million deal last year.

Duty

Speaking at yesterday's ceremony, Habibie said that Indonesia plans to import 730 cabs from Proton Malaysia before the end of March and the rest by the end of the year. Indonesia imposes no duty on importing taxis. "We hope to import more in 1997" he said.

The first three CN-235 aircraft will arrive in Malaysia by November this year while the rest by March next year.

In return, Indonesia will buy 20 Malaysian-made MD3-160 light trainer aircraft and 1,500 Proton cars. Of the 1,500 imported cars, 1,000 will be operated as taxi and the rest will be used by the government.

Indonesia has not set any quota on the number of Proton cars that can enter the country.

Proton cars use Liquefied Petroleum Gas as fuel but there are no LPG stations in the city. Habibie said that his office will cooperate with other government agencies and the state-owned oil company, Pertamina, to solve the problem.

In addition to waiving the import duty on Proton cars, Indonesia has also endorsed the move by Proton Malaysia to set up an assembly plant in Indonesia within two years.

This will be the second such plant outside Malaysia. The other is in the Philippines.

The General Manager of Proton Corporation, Syed Hisham Syed Wazier, said yesterday that the company is undertaking a feasibility study "to find the right place, time and availability of local components to realize the plan," he said.

The president of PT Citra Transport Nusantara, Jonkie D. Sugiarto, told reporters after the ceremony that some parts of the Proton cars, including the air conditioner and ergometer are already provided locally.

The Rp 40-billion (US$18 million) investment project is said by all parties concerned to contribute something to the drivers who will have a chance to own the cars after working at the taxi company for five years. (03).

View JSON | Print