A Story OF Missed Enterprises
Not just Mr. Prabowo has a vision for creating a regional vehicle manufacturer as Indonesia’s leader.  ,
Indonesia’s first president Sukarno, for instance, established PT Industri Mobil Indonesia in 1962 with the goal of producing Indonesia’s second national vehicles.  ,
But, Indonesia experienced common civil unrest before production started in 1965, which resulted in the shooting of more than 500 000 Indonesian Communist Party sympathisers and people.  ,
Under Suharto, who in the 1990s offered revenue exemptions for vehicles that were completely regionally produced, attempts to create a national auto were revived.  ,
The decision was criticized both domestically and internationally because it turned out that Indonesian vehicle manufacturers had been rebranded as common models created by foreign companies.  ,
Indonesia attempted numerous times to make a national auto after Suharto left in 1998. Most prototypes were abandoned at this point.  ,
According to Mr. Bebin Djuana, an expert in the automotive industry, there has been very much help for Indonesian businesses developing their own cars since Suharto.
” These businesses need the president’s support. They are done for if these businesses are told to live in fear of stiff competition from more well-known models, according to Mr. Bebin, a resigned auto business professional who has written numerous books about Indonesia’s auto industry.
He claimed that other nations have been fast-tracking enable release and certification and providing regional players with everything from fiscal incentives and better access to loans and incentives. Before effectively developing their nation’s automobile industry, they also created demand for the goods.  ,
Malaysia, for example, provided RM13.9 billion ( US$ 3.1 billion ) in research and development grants, stimulus packages and tax incentives to Proton since its establishment between 1983 and 2017.  ,
Proton was able to create new models for less money than its rivals, who had to pay import taxes for parts or completely assembled models shipped from abroad.  ,
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” Some nations grant first-time vehicle owners significant grants if they purchase localized brands. Some governments purchase local businesses ‘ vehicles and use them as standard vehicles and operational vehicles, according to Mr. Bebin.
In Indonesia, where leaders frequently concentrate on their own policies rather than pursuing the legacy of their predecessors, these federal incentives continue to exist through plan changes.  ,
These nations continue to support them consistently, especially in the crucial beginning stages of these local businesses. Without ( consistency ) these companies would collapse and they would have to start from scratch”, Mr Bebin said.
After Malaysian sovereign wealth fund Khazanah Nasional sold its Proton interest to company DRB-HICOM for RM1.2 billion in 2012, the Indonesian government continued to offer grants and tax bonuses.  ,
However, the gains came to an end after Zhejiang Geely Automobile Holdings, a Chinese company, sold its 49.9 % stake in the company in 2017.  ,
Pindad will likely receive the same level of help from the Indonesian state, according to Dr. Tauhid of INDEF.
” As a state-owned company, it will have the full support of the government in terms of regulatory protection ( from competition ) and various incentives. He added that it will be able to obtain low-interest funding from state-owned lenders under the government’s approval.  ,
” Pindad stands out from other privately held companies that attempted to create their own car brands.”
What kind of financial assistance Indonesia does offer Pindad, which can only produce a small number of vehicles per month, in order to become a well-known car brand, is still a mystery.  ,
” Pindad needs to have a long-term technique to support its growth,” the authorities said. So far, we have n’t seen such a strategy”, Dr Tauhid said.  ,