JAKARTA: Several European and Indian automotive makers are considering investing in Indonesia by constructing production facilities, which are predicted to spend billions dollar.The governments US$2-billion investment plan to develop cheap and ecological friendly cars also attract automotive producers that have been operating in Indonesia.There are three European-based automobile companies willing to invest in Indonesia, namely Volkswagen, Piaggio, and Tata Motors.VW is in talks but it hasnt tell the exact number. Piaggio also wants to produce and develop Vespa here. Moreover, Tata motors will build a manufacturing base. Tatas investment is about hundreds of million dollar, Chairperson of Indonesian Invesment Coordinating Board (BKPM) Gita Wirjawan said while attending World Economic Forum yesterday.Tata plans to produce simple transportation cars, such as minibus, affordable cars and sport utility vehicles (SUV), he added. Tata, an Indian automobile company that now operates two European icons Jaguar and Land Rover, is aggressive in expanding in Indonesia, Gita said.This European investment may reach billions dollar, he revealed without mentioning the exact number of each companys investment.Those European automotive companies have met the authority of investment in Ministry of Industry concerning the plan, said Minister M.S. Hidayat.The Minister believed that although the plan has been no more than talks, those companies are serious to invest in Indonesia.However, the Minister admitted that those European automotive companies have difficulties in mapping market in Indonesia, which has been dominated by Japanese and South Korean brands.Competing with Japanese and Korean cars will be difficult because it associates with after sales service. We want this to be monitored. Japan has been dominating 80% and followed by South Korean.Take timeThe investment will take time and will be in stages to be completed, said Budi Darmadi, Director General of High-Technology Based Industry in the ministry.If their products can be accepted quickly, investment will continue. But if market gives negative response, it may need other means, such as making new products. Sot it still depends on the market, he said.Chairperson of Indonesian Automotive Industry Association (Gaikindo) Sudirman Maman Rusdi said that there are indeed many automotive companies considering Indonesia as their investment target but the success of European companies investment will depend on market response.Other than those European automakers, Nissan is planning to expand in Indonesia by building a production facility. Nissan is expected to invest about US$150 million IDR250 million.Nissan, along with VW, will cooperate with Indomobil to invest here, Gita said.In the meantime, Sudirman said that national automotive industry has prepared US$2 billion to invest in any sub-sectors, such as conventional cars, cheap and eco-friendly cars, motorcycle, and vehicle spare parts. (t04/msw)

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