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NEWS UPDATES 26 August 2009

Indonesia’s national cars await market response

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Producers of Indonesia’s national car brands - Tawon, Gea and Arina - have yet to decide their launch schedules, pending a market response study, the Jakarta Post quoted an Industry Ministry official as saying.

"The process [for national cars] to reach consumers will take a while. Producers, of course, are counting whether their cars will be sold out or not," Industry Ministry director for land and military transportation industry Panggah Susanto said Tuesday.

The price of the three cars are expected to average 50 million rupiah ($5,000) each.

Despite market uncertainty, Panggah said the ministry had yet to provide specific incentives to the national car makers.

Four-wheel Gea, which is an Indonesian girl’s name, has been tested out by the producer, state-owned train manufacturer PT Industri Kereta Api (Inka), since last year.

Arina and Tawon (bee) are being developed respectively by Semarang State University (Unnes) in cooperation with local administrations and an unnamed Serang-based company.

Each national car maker is expected to produce 5,000 to 10,000 units per annum.



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