• Short Summary

    As form the 22nd of January 1974 no car can be imported to Indonesia. This?

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    As form the 22nd of January 1974 no car can be imported to Indonesia. This is one of the government's hardest-hitting measures in a new campaign to cut the importation of luxury goods. In spite of the fact that new cars are still arriving at the docks in Indonesia's premier port, Tanjung Priok, the ban is being rigidly applied. As they arrive, they must be immediately ra-exported. In an ares of wasteland, near where millions of pounds are being spent on new port facilities, nine hundred brand new Mercedes, Volvos, BMWs and Jaguars wait under the sun for re-export.

    Many have the owners' names painted across their windscreens -- their prospective owners have already paid a heavy import tax and finalised all the necessary documents. Many of the cars are imported as personal effects by students who have been studying abroad, thereby avoiding import tax. Last year one men was given seven years in prison for using students in a caremuggling racket.

    The only cars that are exempted form the ban are cars imported as kits for assembly by local labour and cars belonging to foreign diplomats, visitors and international companies.

    Indonesia is currently enjoying a boom. The country holds 2% of the world's oil reserves and the price of that oil has tripled. But the ban continues. The reasons are said to be two-fold; firstly to save foreign currency for vital capital investment and secondly to encourage the eventual growth of an Indonesian car industry.

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    Reuters - Source to be Verified
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