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Indonesia to ban used vehicle import

The Indonesian government will stop the importation of used vehicles in 2007 to help the national automotive industry return to its track, an official has said.

The ruling on used vehicle importation expires at the end of this year and the government has decided not to extend the ruling, according to Budhi Dharmadi, director general of transportation industry with the Ministry of Industry.

"Used vehicle import cannot be allowed any longer because it will disturb the industry," he was quoted by Bisnis Indonesia daily Thursday.

The government previously permitted used vehicle imports to allow domestic industry to acquire cheap capital goods during the financial crisis beginning in 1997-98.

Budhi said the country's automotive industry must focus on producing new vehicles. The sales of new vehicles in Indonesia are estimated at 550,000 units a year, relatively small compared with other industrial countries.


Source: Xinhuanet