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Jakarta Post

Esemka factory being built despite lack of permit

Despite lacking relevant certifications, the construction of a factory for making the locally conceived Esemka car began in Boyolali regency, Central Java, early this year

Ganug Nugroho (The Jakarta Post)
Surakarta
Sat, March 5, 2016 Published on Mar. 5, 2016 Published on 2016-03-05T09:20:04+07:00

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D

espite lacking relevant certifications, the construction of a factory for making the locally conceived Esemka car began in Boyolali regency, Central Java, early this year.

Eko Nugroho, the head of the control division at the Boyolali Investment License and Integrated Service Agency (BPMP2T), said that the agency had not received any documents that would allow it to issue a building construction permit.

'€œThey [Esemka project proponents] only came to us to present their investment plans, but their permit is not ready yet because it'€™s still being processed,'€ he said.

He said that his office was also waiting for a permit from the regent as the factory was being built on land owned by villages.

'€œBut we'€™re basically supporting this project,'€ Edi said.

The construction of the factory on a 11.4-hectare plot of land is being conducted by three companies: PT Adiperkasa Citra Esemka Hero, Proton from Malaysia and PT Solo Manufaktur Kreasi (SMK).

The construction project coordinator is PT Ghewantika Konstruksi.

The construction project manager, Budiyanto, said that construction started in January and was currently at the stage of installing the steel frames.

'€œThe progress is at 20 percent and we'€™re aiming to complete it by May,'€ he said.

The construction, he said, would be conducted in two phases, with the first being the construction of a 15-meter by 30-meter showroom and the second being the construction of a 60-by-100-meter assembly building.

Separately, Surakarta Mayor FX Hadi '€œRudy'€ Rudyatmo expressed appreciation over the development of the Esemka car factory, even though it was not being developed in Surakarta, where the car was first produced.

'€œThe Esemka car was born here, but the factory can be developed anywhere,'€ Rudy said.

He added that the factory could not be built in the city because the land was unavailable.

He also hoped that the central government would keep supporting the car and its future. One way of doing so, he said, was by using Esemka cars as official vehicles.

'€œThe government must also be consistent in supporting this program, so they will not just issue the production license but do nothing afterwards. The Esemka is a local product and it deserves attention,'€ Rudy said.

Responding to the mass production of the Esemka car, the president director of the Solo Techno Park (STP), Darsono, said that the Esemka'€™s producer had to be able to pick the right market amid tight competition with Japanese and Korean cars that are currently flooding the Indonesian market.

He said the choice of market was an absolute requirement for the Esemka car to survive the competition in the automotive industry. '€œThe point is, the Esemka has to be well sold in the market and win competitions with other car products,'€ Darsono said.

The Esemka was first assembled by students of vocational senior high schools in Surakarta and it boosted Jokowi'€™s popularity when he was the mayor of Surakarta.

After a while, however, the car seemed to just disappear and many blamed Jokowi for abandoning it.

The Esemka came into spotlight again after an agreement was made between Proton Malaysia and PT Adiperkasa Citra Lestari to mass produce it. Jokowi witnessed the signing of the deal between the two companies.

Last year, the President conducted a meeting with top policy makers from the Office of the Coordinating Economic Minister and the Industry Ministry to discuss possible support for the locally made car.

The meeting concluded with an agreement to restructure the business model of the Esemka, focusing it on producing cars for agricultural purposes, rather than for competing with automotive giants such as Honda and Toyota in the passenger car segment.

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