When will we produce own car?

When will we produce own car?

As a country with a big population and with a fast growth in
Gross Domestic Product, Indonesia is a good market for the car
industry. Since the year 1990, the volume of sales has always
been big. But the market is continuously dominated by the big
five, i.e. Toyota, Honda, Mitsubishi, Suzuki and Daihatsu, all
from Japan.

In 1978, the government issued a regulation which required
local assemblers to gradually introduce the use of locally made
components. The target was that in 1982 Indonesia would
manufacture cars. But in practice, appointed assemblers ignored
the regulation, and in 1982 no cars were made by Indonesians.

A big investment is needed to build a car factory. On the
other hand, just to assemble a car is highly profitable, whereas
to import a foreign produced car is subject to 200 percent tax.

Appointed assemblers are just merchants, not industrialists.
So they don't care who makes the cars. The important thing for
them is how to make profit. It seems impossible to expect
appointed agents to produce Indonesian cars. Instead, the
government should play the role, and in this case state-owned
companies (BUMN) is a good answer. Like state-owned companies
Perumka (railway), aircraft producer PT Industri Pesawat Terbang
Nusantara and weapon producer PINDAD, BUMN could be directed to
make cars. In France, French Renault is a state company.

SIHONO

Bandung, West Java