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#48269 - 26 Mar 07 10:43 GOI/Investment in Auto Sector Tipped to Surge
biznews Moderator Offline
Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
From Government of Indonesia

Investment in Auto Sector Tipped to Surge


The government predicts the nation's automotive industry will boom this year and in 2008. In the first quarter of 2007, investment in the automotive sector has already reached $173 million, said Budi Dharmadi, Director General of Transport Equipment and Information Technology Industry, Antara reported on Wednesday (21/3/07).

A number of the world's leading automotive principals have shown strong interest in establishing their production bases in Indonesia, Dharmadi said. Hyundai has already built a new factory to produce trucks and buses with an investment of $23 million, he said.

Meanwhile, Renault plans to invest $80 million to produce passenger cars and multipurpose vehicles and Nissan is set to expand its production capacity with an additional investment of $70 million.

Dharmadi said the trend is expected to continue through 2008 as foreign firms see strong prospects for the country's economy.
Meanwhile Chinese auto maker Lifan is studying the possibility of building an assembling plant for its cars in Indonesia, Bisnis Indonesia reported.

Chery and Geely cars from China are already assembled in Indonesia, the newspaper quoted an official as saying.
The official said Lifan has studied the possibility of using the assembling plants of Bosowa, Timor or Texmaco.

The source said Lifan already secured a license and it is expected to make Indonesia as its production base for Asian, African and European markets.
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#48273 - 26 Mar 07 11:01 Re: GOI/Investment in Auto Sector Tipped to Surge [Re: KuKuKaChu]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
For the past few months I have read article and article about how strong the automotive industry is looking .... My question is does anybody know if this investment is secured and are car manufacturers looking at Indonesia seriously, or is this the government talking things up in a desperate attempt to land some investment??

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Edited by Piss Salon
Edit Reason: taste

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#48275 - 26 Mar 07 11:23 Re: GOI/Investment in Auto Sector Tipped to Surge [Re: chewwyUK]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
hard to know whether it's "real" investment or not. car industry worldwide is always throwing huge figures about to impress governments. one question is, how strong really is the local car market? frankly, it's looking soft to me.
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#48276 - 26 Mar 07 11:32 Re: GOI/Investment in Auto Sector Tipped to Surge [Re: KuKuKaChu]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
the local car market is starting to stall ... I know that GM, Ford and Astra are finding things a little sticky in Indonesia
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Edited by Piss Salon
Edit Reason: taste

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#48293 - 26 Mar 07 13:20 Re: GOI/Investment in Auto Sector Tipped to Surge [Re: chewwyUK]
doremi Offline
Member+++

Registered: 17 Jan 07
Posts: 488
Loc: slouch couch
In the US, the big three car makers, GM, Ford, Chrysler are in trouble, losing billion of dollars for the last few years. Chrysler is selling its European, Aston Martin, I believe to private equity firm.
However, GM is finding China to be lucrative market now and GM cars selling like crazy in China.
A Chinese car maker is trying to build a car mfg facility in Indonesia? interesting. Why do they pick Indonesia? Does the gov't offer huge tax break or other incentives?

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