Daihatsu Raise Vehicle Production to 280,000 Units in year 2010

Daihatsu Xenia

Despite Indonesia government plan to raise vehicle taxes and vehicle registration fees, PT. Astra International is not going to cut its vehicle sales target. After the general meeting of shareholders at the Four Seasons Hotel, Jakarta, on Wednesday, May 26, 2010, President Director of Astra International, Mr. Prijono Sugiarto Astra said will first look and hope there are still those who make sure that vehicle taxes increase is not necessary to implement. This year, Astra – automotive division will increase vehicle production capacity. PT. Astra Daihatsu Motor, one of automotive division, will increase vehicle production capacity of 211,000 units to 280,000 units per year. Meanwhile, the expansion of the car plant began to be done early next year 2011.

President Director of PT. Toyota Astra Motor, Jhonny Dharmawan said that national cars sales during April reached 60,000 units. While, Astra groups has managed 55 percent of total cars sales in April. The cars sales of Toyota, Daihatsu, Isuzu, Nissan Diesel and Peugeot that distributed by Astra International books 36,090 units in April 2010. The total national cars sales from January to April rose to 232 thousand units. If the vehicle taxes increase and the crisis of Greece did not affect to Indonesia economic so Astra groups optimistic national cars sales could reach 660 thousand units until the end of year. It should be no obstacle that can exceed 2008 sales of 609 thousand units. Read more…

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Jakarta’s Traffic Solutions in Seminar of Mass Transport

On Wednesday, May 26 2010, in Jakarta has held a seminar of mass transportation problem, the German-Asean Conference on Mass Transport Technologies. On that seminar, Mr. Lukman Hakim from LIPI said so many problems contribute to Jakarta’s traffic problem. If compared with other metropolises : Singapore, Tokyo and New York City, which has roads up to 20 percent of city space, while Jakarta only have about six percent of total Jakarta area.

According to year 2009 estimates, the result is a jumbled nightmare of mostly private cars since there are 1.5 million cars in Jakarta squeezed onto roads that can only handle about one million. While from total industry volume in automobile, the public transportation, such as buses, micro-buses, and others makes up only about 8 percent of all vehicles.

So the result is not surprising that we see traffic jams every day during peak hour, before and after office hour, even on highway or toll roads that were built to reduce traffic. This Jakarta’s traffic also a threat to the economy and were estimated to cost more than Rp 26 trillion or USD 2.8 billion every year. Fuel consumptions accounts for Rp 10.7 trillion, health costs about Rp 5.8 trillion and productive time lost Rp 9.7 trillion.

To prevent the traffic jams increasing, LIPI as Indonesian Institute of Sciences suggest to Jakarta’s government some regulations below:

1.         To limit car ownership in Jakarta.

2.         Punitive vehicle taxes on second and subsequent cars in each family

3.         Increasing taxes at the pump

4.         Charging for road usage, electronic road pricing

5.         Restricting motorcycle users from buying “Premium” subsidized gasoline.

Furthermore, these regulations are often criticized for unfairly penalizing the poor. Peoples said and expect that Jakarta’s government prior to improve the transportation mode.

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By Next Month, Jakarta Car Prices may Increase 20 percent

Starting in June 2010, Jakarta residents may have to reach deeper into their pockets to buy a car. It’s because of the car prices are likely to increase by 20 percent following the city administration’s plan to raise the yearly car ownership tax or “Pajak Kendaraan Bermotor (PKB) and vehicle registration fee or “Bea Balik Nama” (BBN).

Mr. Sudirman as the chairman of GAIKINDO, Indonesian Automotive Industry Association, by Tuesday, May 18 2010 said that GAIKINDO had expressed its objection toward the vehicle tax hike plan during a meeting with the city administration last week, because it might lead to a significant increase in car prices. He also said the economic situation is just recovering and the national car industry is facing a possible decline following the vehicle tax hike plan as quoted by “kompas newspaper”.

As following the implementation of a 2009 law on regional tax and retribution, DPRD Jakarta or The Jakarta Provincial Legislative Council has proposed a hike of six vehicle taxes in June 2010. According the new 2009 law, an increase in yearly car ownership tax should be implemented progressively. For instant, for first car ownership will charge by 2 percent of car prices while second car ownership charged by 10 percent.

The Jakarta council has also proposed to increase the vehicle registration fee (BBN) by 20 percent while current fee is 10 percent. However, the tax hike would hamper sales since car prices could raise by 15-20 percent. Previously, GAIKINDO predict total national cars sales in year 2010 could be records 600,000 units.

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