Make fuel-efficient cars: Govt

The Jakarta Post, Jakarta

Minister of Industry Andung A. Nitimihardja urged automotive makers in the country to produce fuel efficient vehicles and develop cars that use alternative energy in a measure to curb fuel consumption.

"I would urge Daihatsu and other car manufacturers to produce and sell fuel efficient vehicles and support the use of alternative energy," he said on the sidelines of a ceremony marking the rolling of the production line of PT Astra Daihatsu Motor's millionth car here on Thursday.

Antara quoted Andung as saying that the government would provide support to encourage firms to produce more efficient and environmentally friendly vehicles. He expected manufacturers to produce more cars with smaller engine capacities, instead of bigger ones, to reduce fuel consumption.

Daihatsu -- whose models include the Xenia, Zebra, Ceria and Taruna -- revealed that it planned to invest Rp 500 billion (US$51.05 million) to increase its annual production capacity from 110,000 units to 140,000 units in 2006.

ADM vice president Noertjahjo Darmaji said the increased capacity would enable Daihatsu to employ an additional 700 workers.

Meanwhile, Daihatsu Motor Corp. executive president director Katsuhiko Okumura said Indonesia had been the company's production development priority base for the last 30 years for both passenger and commercial vehicles.

"Our target is to become the market leader in Indonesia," he was quoted by Antara as saying, but adding that Daihatsu would need some time to achieve this target as its current market share stood at only 9.9 percent.