Auto firms cool on new regulation<\/p>\n
JAKARTA (JP): The Indonesian automotive industry has agreed
\nnot to debate the contents of the Presidential decree No.2\/1996
\nwhich gives tax exemption to the newly-established auto-maker, PT
\nTimor Putera Nasional.<\/p>\n
\"We have discussed both the positive and negative impacts of
\nthe regulation. And none of us objected to its contents,\" said
\nthe Chairman of the Indonesian Automotive Industries Association
\n(GAIKINDO), Herman Z. Latief.<\/p>\n
Herman told journalists after a meeting on Friday evening that
\nthe association will give the government the association's
\nanalysis on the negative impact of the regulation.<\/p>\n
He declined to elaborate.<\/p>\n
\"In the forthcoming meeting with the government we will not
\ndiscuss the regulation but the impacts of the regulation,\" he
\nadded.<\/p>\n
The association's cool reaction surprised journalists who
\ncovered the meeting.<\/p>\n
The meeting of 12 automobile assemblers, originally predicted
\nto be \"hot\" with controversy, finished earlier than expected.<\/p>\n
The association, according to Herman, wisely welcomed the
\ndecree.<\/p>\n
Alam Wijono from Toyota Astra Motor said \"We can not predict
\nwhat's going to happen because we are still studying it now.\"<\/p>\n
An executive of another automotive company only said \"this is
\na government decision.\"<\/p>\n
Meanwhile, the Japanese embassy said on Friday it was studying
\nthe regulation for possible breaches of global trading rules of
\nthe World Trade Organization.<\/p>\n
\"We are still studying the contents of the package. Generally,
\nwe need to see if it is in line with the WTO (World Trade
\nOrganization) or something like that,\" the embassy's First
\nSecretary on economic affairs Koji Toyokuni was quoted by AFX-
\nAsia as saying.<\/p>\n
\"The Japanese automotive companies have invested so much in
\nIndonesia, and I think Japanese industry has contributed a lot to
\nthe development of Indonesia's automotive industry,\" Koji said.<\/p>\n
A retired executive of PT Kramayudha Tiga Berlian Motor, Adi
\nSasono, positively welcomed the regulation.<\/p>\n
\"This is part of our strategy to strengthen the country's
\ncompetitive edge,\" Adi was quoted by Republika as claiming.<\/p>\n
The regulation, he says, will also raise investment and create
\njob opportunities. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/auto-firms-cool-on-new-regulation-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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