Spain studies auto business

JAKARTA (JP): Spanish businessmen are studying the possibility of establishing a Volkswagen automobile assembly plant in Indonesia as the car is still very popular throughout the country, a Spanish official said yesterday.

Spanish Governor of Catalonia Jardi Pujol told reporters after meeting with President Soeharto here that businessmen from his country want to increase investment in Indonesia.

"The businessmen especially want to invest in medium and small-scale industries," he said.

Data from the Investment Coordinating Board (BKPM) showed that there are now four Spanish investment ventures in Indonesia, valued at $59.8 million. One of the leading companies from Spain, aircraft manufacturer CASA is cooperating with the Bandung-based National Aircraft Manufacturer (IPTN).(icn)