Govt Not To Cut Car Production

Jakarta (Antara Bali) - Industry Minister MS Hidayat said the government has no plan to cut domestic car production to reduce traffic congestion in a number of big cities in the country.

"Although some parties have blamed motor-vehicles as the cause of traffic jams, the national automotive sector has been one of the drivers of economy growth in Indonesia," he said at a seminar on automotive industry here on Tuesday.

He said the domestic automotive industry is projected to reach one million units next year. With strong buying power and easy access to consumer credits for middle-income and below earners he believed the domestic market would continue to grow.

"The government would not suppress automotive production and I have also conveyed to the President to continue to encourage production and exports to Asian, African, Latin American and Middle Eastern regions. Automotive industry is one of the prioritized sectors in the national industry policy," he said.

He said the government's strategy is developing full manufacturing including designing and engineering as well as producing components locally.(IGT)