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Wage rows threaten Indonesia's booming manufacturing

Source:February 28, 2012 | BBC News Release Date:2012-03-02 581
MetalworkingSemiconductor/Electronic ChipSemiconductor / Electronic Chip
Could strikes dent Indonesia's growing manufacturing power?

By Karishma Vaswani

For many Jakartans a car is a way of life. If you can afford one, it's one of the only ways to sit out the city's intolerable traffic.

Rahmatul Mutmainah didn't have to think too hard about her decision to buy a second car, even though it is going to set her back some $30,000 (£19,000; 22,340 euros).

Inspecting a new Toyota minivan model at one of the carmaker's many showrooms in Jakarta, she is quite clear about how important the new purchase is for her business - and for her personal comfort.

"It's a necessity," she says. "I drive a sedan now, and that's just not big enough."

Ms Mutmainah is in the entertainment industry, and manages a well-known singer in Jakarta. Often, she has to transport artists and performers from one part of the city to the next.

"There's a lot of traffic in Jakarta, so if you in sit in a small car, it's just not comfortable."

And these days Indonesians are feeling far more comfortable about spending their cash than ever before.

Revving up

Car sales in this country have soared of late -- and Toyota Motors has been a huge beneficiary of this new-found love for the automobile. It's the leading car firm in Indonesia, and, along with its affiliate Daihatsu, is thought to have a market share of about 65%.

The most popular car in Indonesia is the Toyota Avanza, selling at about $15,000. The small family car has become a symbol of the Indonesian middle classes' new found wealth.

Industry experts say more than a million cars will be sold in Indonesia this year - a year ahead of expectations - making it the largest car market in South East Asia.

That's why foreign carmakers are increasingly attracted to the country, not just to sell their cars in, but also to be close to their customer by settmj.monde

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