National car unlikely without incentives: Camaro
National car unlikely without incentives: Camaro
By Alexander Corne and Mitchell Mackey
Progress on the development of an Indonesian national car is unlikely without significant government assistance, said Angky Camaro, Indomobil's marketing and business development managing director.
Speculation is rife within the industry that a national car project is underway, driven by the private sector and government interests. However, there has been no public announcement so far.
"Rumors will be heard, but progress we never see," Angky said in an interview with Automotive Business & Motoring News.
"The future of the project depends on the government. At present, the government has yet to offer any incentives for the car industry to develop its own car.
"If government policy wants to protect one player, one company, a national car may be developed, but if everyone becomes a player, and gets involved, this will act contrary to economies of scale because of the limited total market.
"The government has to choose one player and make one car."
Angky said Indomobil would build the Indonesian national car if the government wanted it to and the right incentives were offered.
"At this stage, the government has given no indication to the direction of future developments."
Indomobil is the second-largest player in the Indonesian car market, assembling and distributing a range of brands such as Nissan, Volvo and Suzuki.
The production of a national car, similar to Malaysia's Proton, is Indonesian government policy. However, many industry analysts regard the concept as impractical because of the huge costs involved and the fiercely competitive nature of the international car industry.
Malaysia's Proton relies heavily on Mitsubishi technology and a web of protective government regulations and taxes.
In its present form, it would not survive without this official support, a policy which will be scaled back over time.
The establishment of a similar protective mechanism in Indonesia would not be in keeping with the government's APEC commitments and its recent deregulatory reforms.
The chairman of the Indonesian Automotive Federation, Herman Z. Latif, said Indonesia's resources should be focused on the development of a network of automotive component companies to supply not only the domestic market, but also the international market.
Despite many apparent obstacles, there is no shortage of industry speculation about the national car, which in terms of government policy is the responsibility of the research and technology minister, B.J. Habibie.
Megatech, which owns Italian super carmaker Lamborghini, is one of several companies examining the concept's feasibility, as is the Korean manufacturer Kia.
The British Rover Group was also very interested in participation, but it has withdrawn, after a prolonged period of negotiations, and is no longer actively involved.
The latest development is the involvement of the internationally-renowned Millard Design Group in Australia, which is reportedly working on a vehicle which would be manufactured in Indonesia under a new brand name.
The Millard Design Group, which is based in Melbourne, is believed to be now developing the basic engineering parameters of what could become the national car.
The company will not comment officially, or unofficially about the work, but it is understood that the project is live and that designers have set aside studio space for prototype sketches.
The Millard Design Group is also working on an Australian concept car which is to be displayed around the world as a showcase of Australian automotive technology.
It will use advanced steels, the much-talked about Orbital two-stroke engine (which offers efficiency and weight-saving advantages) and several other Australian design innovations.
If the Millard project developments momentum, it is possible that elements of the Australian concept vehicle would be translated into the Indonesian car.