Car dispute won't affect trade relations: U.S. official<\/p>\n
JAKARTA (JP): The United States' opposition to Indonesia's
\npolicy in the automotive industry would not affect bilateral
\ntrade relations between the two countries, says a U.S. official.<\/p>\n
Under Secretary of State Joan Spero told reporters here
\nyesterday that the U.S. government had no plans to tie the car
\npolicy to other economic activities.<\/p>\n
In February the Indonesian government granted tax and tariff
\nbreaks to PT Timor Putra Nasional, a company controlled by
\nPresident Soeharto's son Hutomo Mandala Putra, for its \"national
\ncar\" which will be produced in cooperation with Kia Motors of
\nSouth Korea.<\/p>\n
\"The national car policy will be negotiated separately and
\nthere is no plan to relate it to other trade issues,\" Spero told
\nthe journalists following a meeting with Indonesian Minister of
\nIndustry and Trade Tunky Ariwibowo.<\/p>\n
She said the U.S. government will not offer a compromise to
\npersuade Indonesia to change its controversial car policy.<\/p>\n
Spero, who is here to accompany U.S. Secretary of State Warren
\nChristopher to attend the ASEAN Regional Forum, also questioned
\nthe Indonesian government's commitment to limiting software
\npiracy and other issues related to intellectual property rights
\nin yesterday's meeting.<\/p>\n
Tunky said that Indonesian and U.S. trade officials would meet
\nin Washington by the end of this month to further discuss the car
\npolicy.<\/p>\n
\"But our stand is clear. We don't want to negotiate but to
\nexplain our car policy,\" Tunky told journalists following the
\nmeeting with Spero.<\/p>\n
He emphasized that the Indonesian government would not change
\nits stand on the \"national\" car in the planned Washington
\nmeeting, which will be held in the newly established Trade and
\nInvestment Framework Arrangement (TIFA) forum.<\/p>\n
The forum was established earlier this month to settle trade
\nconflicts between the two countries amicably.<\/p>\n
Japan<\/p>\n
In another development, visiting Japanese Foreign Minister
\nYukihiko Ikeda said here Monday that the Indonesian government's
\nexplanations on its car policy were still less than satisfactory.<\/p>\n
However, the issue will not affect bilateral relations between
\nJapan and Indonesia, Ikeda said during a meeting with his
\nIndonesian counterpart Ali Alatas.<\/p>\n
Ikeda said that it was necessary to bring the national car
\nproject in line with international trade rules.<\/p>\n
Japanese car makers, who dominate Indonesia's automotive
\nmarket, strongly oppose the car policy and are threatening to
\nbring the issue to the judicial arm of the World Trade
\nOrganization (WTO).<\/p>\n
Opposition also comes from U.S. and European car
\nmanufacturers, which charge the Indonesian national car program
\nwith breaking the WTO's free trade principles.<\/p>\n
Timor Putra Nasional has introduced its \"national car\", called
\nTimor, in the domestic market, but deliveries can only be made in
\nNovember at the soonest.<\/p>\n
A number of automotive companies, including one owned by
\nHutomo's elder brother Bambang Trihatmodjo, have applied for a
\nsimilar tax facility, but were turned down. (hen)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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