Truck sales to remain slow next year

Truck sales to remain slow next year

The Jakarta Post, Jakarta

Truck sales are expected to remain weak next year with businesses
still concerned about the country's economic and political
situation, especially with the 2004 general election approaching,
according to an industry executive.

Gunadi Sindhuwinata, president of PT Indomobil Sukses
International, said on Friday truckmakers in Indonesia expected
to sell 300,000 trucks in 2003, about the same number expected to
be sold this year.

"The stagnant growth is attributed to concern over the
political situation next year ... ," Gunadi said.

He was speaking at a press conference to mark the 20th
anniversary of truck manufacturer PT Hino Indonesia
Manufacturing's operation in Indonesia.

Japan's Hino Motors Ltd. holds a controlling 60.2 percent
stake in Hino Indonesia, while Indomobil is the second largest
shareholder with a 20.6 percent stake.

Gunadi said businesses would be discouraged from purchasing
new trucks if the outlook for the country's political situation
ahead of the general election was shaky.

He added that as the country had yet to fully recover from the
economic crisis that began in the late 1990s, many companies were
still postponing plans to invest in new trucks.

Hino Indonesia also announced that it would split into two
companies in a bid to boost efficiency amid increasing
competition as a result of the regional free trade area.

The first company will retain the name PT Hino Indonesia
Manufacturing. It will be spearheaded by Hino Motors Ltd. and
will focus on manufacturing trucks and buses.

The second company, to be called PT Hino Motors Sales
Indonesia, will be spearheaded by Indomobil Sukses and will
handle the marketing business.

"The split will allow both Hino Motors and Indomobil to
compete in their respective areas of core competence," said
Gunadi.