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The presence of Chinese carmakers in Indonesia is expected to spur growth in domestic industry and allow the development of related technology, a leading economic newspaper reported Tuesday.

Two Chinese car manufacturers, Chery Automobile Co. Ltd and Geely International Corp., have recently begun selling products or announced plan to establish an assembly plant in Indonesia.

Kukuh Kumara, analyst with the Indonesian auto manufacturers association Gaikindo, has said not only does the Chinese expansion aim to sell cars, it also brings investment and the technological development to Indonesia, reported Bisnis Indonesia.

"Seen from the industrial perspective, the presence of Chinese cars offers us an opportunity to grow. But the success of China's auto expansion here depends on their ability to convince buyers," he said.

"Motorcycles can be assembled anywhere, but not cars. They (Chinese manufacturers) must invest here, at least in assembly facility," said Gunadi Sindhuwinata, who chairs leading auto assembly and distribution group Indomobil.

Representatives from four Chinese auto industries have offered partnership with Indomobil, which finally accepted only Chery to sell small city cars in Indonesia, he said without elaborating.

Source: Xinhua
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