DRB-Hicom confirms plans to export Volkswagen models to Indonesia

The Jetta is one of the two Volkswagen models that DRB-Hicom will be exporting to Indonesia. — AFP-Relaxnews pic
The Jetta is one of the two Volkswagen models that DRB-Hicom will be exporting to Indonesia. — AFP-Relaxnews pic

PEKAN, April 4 — DRB-Hicom Bhd is set to penetrate the Indonesian automotive market with its two Volkswagen model, Polo and Jetta, in the near future.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the first batch for export would consist of 500 completely knocked-down (CKD) units that were assembled at the DRB-Hicom automotive complex here.

“The export is in line with government’s aim to see more export for locally-assembled cars, and DRB-Hicom’s objective when it allocated more than RM1 billion in setting up this complex in Pekan.

“Indonesia will be the first country because of the facilities provided by its government for DRB-Hicom to export the cars,” he said during a press conference after visiting International College of Automotive (ICAM) here, today.

Mustapa also noted that as for today, a total of 17 out of 22 car manufacturers had reduced their prices after the implementation of Goods and Services (GST) tax at 6 per cent, replacing the 10 per cent of Sales and Sevices (SST) tax.

The government had no intention to ask the other five car manufacturers to cut their prices as it was purely their decision, he added.

He also noted that currently, there is no plan to reduce the exercise duty on vehicles imported into Malaysia.

Mustapa said that the car price reduction was an evidence that Barisan Nasional (BN) had fulfilled its promises made during the 13th General Election.

“BN had vowed to gradually reduce car prices by between 20 and 30 per cent in the next five years (from the general election date) and now, the average car reduction price is 15.78 per cent,” he said.

On the ICAM, Mustapa lauded DRB-Hicom for its RM360 million investment in setting up the 16.8-hectare campus college with up-to-date facilities that could boost automotive work resources in the future.

“The ICAM graduates are employed after finishing their studies, either by DRB-Hicom or other automotive manufacturers.

“DRB-Hicom itself is the biggest employer here in Pekan, with more than 4,000 workers,” he said. — Bernama

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