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SCMP Reporter

Bimantara Group, controlled by Bambang Trihatmodjo, the son of Indonesian President Suharto, wants to form a joint venture with two transport organisations to import motoring spares at a subsidised rate of 5,000 rupiah (about HK$3.50) to the US dollar.

 Unable to secure adequate funds, the two groups, the Organisation of Land Transportation Owners (Organda) and the City Land Transportation Agency, turned to Bimantara for help.

 The proposal is half the free-market exchange rate. The government would be expected to foot the difference. Bimantara is also lobbying to pay zero import tax.

 President Suharto has recently said the government would consider subsidising imports of essential goods that are in short supply at a 5,000 rupiah rate because of the financial crisis.

 However, this had been widely interpreted to mean humanitarian items like food and medicine - not foreign vehicle parts.

 Analysts believe Bimantara's proposal looks likely to go through.

 Not only has Mr Trihatmodjo the advantage of having a father as president, but an old friend may soon be installed as finance minister.

 Former tax minister Faud Bawazier, who used to sit on a number of Bimantara Group boards, is expected to replace out-going Finance Minister Mar'ie Muhammad in this weekend's post-presidential election cabinet reshuffle.

 Darmadi Widjaja, senior analyst at Sassoon Securities Indonesia, said: 'Currency subsidies had been expected for things like medicine. However, motor vehicle parts are quite essential too because public transport companies are screaming because they cannot get the parts.

 'Having said that, I can't see why Bimantara should be granted a monopoly.'  Dealers in Jakarta have complained they cannot get spares due to a lack of letters of credit from foreign banks to cover their imports. About 30 per cent of Jakarta's public buses are off the streets.

 The city's remaining motoring spares are being sold at mark-ups of about 300 per cent.

 The government has allocated 12 billion rupiah in bank credits to help bus operators buy spare parts.

 Izak Rumaedi, head of Organda, said: 'Quite simply we don't have any money. Bimantara has come up with a good offer to help our plight.



Bimantara eyes parts monopoly