Negative media reports affect Timor car sales

JAKARTA (JP): Negative media reports and a fear of poor after- sales services have affected sales of the country's controversial national car, according to its distributor.

Richard Hendarmo, the operational director of PT Timor Distributor Nasional said yesterday that the company sold only 5,800 Timor cars from the beginning of October to now, far below its initial target of between 3,000 and 4,000 a month.

The local media reports, which thus far highlighted only the "bad" side of the car, and the rumors that the sales were not supported with an adequate supply of spare parts, have made "some prospective buyers postpone their purchase", he said.

Although he acknowledged that the media reports had affected sales, Richard strongly denied the rumors that the cars were not selling.

The company has imported 14,000 cars, about 6,000 of which are still parked at Soekarno-Hatta International Airport.

The 6,000 Timor cars parked at the airport was not an indication of weak sales, he said.

"We are keeping them as a buffer stock to anticipate a rush in demand," he said after the ceremony to mark the opening of the Timor car showroom at the Antara building.

He denied rumors that many Timor cars had been donated to foreign ambassadors and sold to government offices owing to the difficulties in sales.

Two cars have been donated to the Palestinian ambassador in Jakarta owing to the company's good relationship with him, and 15 cars have been bought by the East Java administration, 10 cars by the Jakarta military command, 13 by the National Land Agency, and eight by the National Logistics Agency, Richard said.

Richard, who refused to answer the questions of foreign journalists in English on account of his national pride, asked the press to be fair by also reporting the fact that the Timor car project had brought benefits to the public.

"For instance, after the Timor car was launched, car producers in the country vied to cut the prices of their products. Previously, the price of a car could exceed that of a luxury house," he said.

Protests

Timor cars, which are produced by PT Timor Putra Nasional, owned by President Soeharto's youngest son Hutomo Mandala Putra together with South Korea's Kia Motor, has incited protests from Japan, the United States and the European Union.

The government has given Timor Putra a license to develop the so-called national car. It is allowed to import cars from its partner Kia Motor without paying sales tax and import duties until it finishes the construction of its factory in 1998.

The tax incentives enable the company to sell its products at around Rp 36 million (around US$15,250) or around half the price of Japanese makes of the same class (with a 1,600cc engine).

Benny Koernadi, director of PT Timor Industri Komponen, the Timor car component maker, also denied the rumors that Timor car sales were not supported by adequate after-sales service.

The firm, he said, had enough spare parts in its warehouse in Cipinang, East Jakarta, and sufficient spare parts were supplied to all agents each month.

The firm already has 26 sales agents throughout the country. All are required to have adequate spare parts, a showroom, workshop and Timor car technicians. They must also have a second- car division so that Timor car users could resell their cars anytime, he said.

Aside from the sales agents, a total of 226 spare part shops cross the country, including 12 shops in Jakarta, sold Timor car spare parts.

"There are at least two spare part shops selling Timor car spare parts in all big towns throughout the country, Benny said."

He also said that all the sales agents have opened a round-a- clock service and the company has launched a homepage on the Internet. (jsk)