National Cars to Cater to a Niche Market
27 February 2015 11:44 WIB
TEMPO.CO, Jakarta - The Coordinating Economic Minister Sofyan Djalil, said that Indonesia was late in producing national cars, which resulted in the inability to compete with the global market. "Competing in a huge automotive industry is impossible. You can't imagine us to be like Malaysia," he said at the Presidential Palace on Wednesday, February 25, 2015.
According to Sofyan, President Joko "Jokowi" Widodo have requested for national cars to serve specific segments, such as agricultural or rural transportation. The development model will be akin to Esemka, a local car made by a group of vocational school students from Solo. "We are not going to make cars like the global [automotive] giants," Sofyan said.
Sofyan hoped to produce 500 cars per month and go for a niche market with a specific target. For the initial budget, Sofyan said Esemka would need Rp 100 billion. "If we can sell 400 units a month, that would be remarkable," he added.
Industry Minister Saleh Husein, said that the detailed plan to develop national cars for a specific segment would be reviewed by the Technology, Research and Higher Education Minister Muhammad Nasir. However, Saleh said that there was no discussion on subsidy and fiscal incentive for the project. "There will be customized regulations, so as not to violate the international regulations," he said.
Saleh said that Esemka had passed the test done by the Industry and Transportation Ministry. He mentioned that the Esemka Director had agreed to produce the national transportation with domestically-sourced materials.
Some local companies, such as Fin Komodo Teknologi, have developed specifically segmented cars. The Bandung-based company had produced the Fin Tawon, a small vehicle for plantation purposes. However, they are having difficulties to mass produce the vehicle because of the limited market and capital. "The government stays silent, there hasn't been any support," said Dewa Yuniardi, the Fin Komodo Teknologi marketing coordinator.
TIKA PRIMANDARI | ALI HIDAYAT | DEWI SUCI
