1. CARS SALES IN 1998 SHRANK 85% GOVERNMENT THREATENS TO CONFISCATE TPN CAR PLANT.

Indonesian Commercial Newsletter, March, 1999

The existence of PT Timor Putra Nasional (TPN) and its controversial Timor car are threatened. In November 1998, the government demanded the company to pay the import duty and luxury sales tax for cars it imported from South Korea as it failed to meet the condition as a national car producer. The government under former President Suharto granted it a generous tax break on condition that it would produce cars with a local content of 20% in 1997, to be raised to 40% in 1998 and to 60% in 1999 and export car components under counter trade system to South Korea after it imported the KIA ...