France supports RI's controversial car policy<\/p>\n
JAKARTA (JP): The French government has not joined other
\ndeveloped countries in pressing Indonesia to change its
\ncontroversial national car policy.<\/p>\n
Visiting French Economy and Finance Minister Jean Arthuis said
\nyesterday that he had discussed many issues, including the
\nnational car policy, with President Soeharto.<\/p>\n
\"In a transitional period (towards the free market), it is
\nnormal for a country to make adjustments which sometimes deviate
\nfrom free market principles,\" Arthuis told journalists after
\nmeeting Soeharto and Coordinating Minister for Economy and
\nFinance Saleh Afiff.<\/p>\n
The Indonesian government in February granted tax and tariff
\nbreaks to PT Timor Putra Nasional, which is controlled by
\nSoeharto's youngest son Hutomo Mandala Putra, to build \"national
\ncars\" in cooperation with Kia Motors Corp. of South Korea.<\/p>\n
The move has been sharply criticized by Japan, the United
\nStates and the European Union for violating World Trade
\nOrganization (WTO) provisions.<\/p>\n
Japan on Tuesday again threatened to take Indonesia to the WTO
\nover its policy. Meanwhile, the United States said it was ready
\nto join other countries taking Indonesia to the WTO if it failed
\nto resolve the issue through consultation.<\/p>\n
Arthuis, who ended his two-day official visit yesterday, took
\na softer line on the car policy, saying that France could
\ncontribute to Indonesia's national car program.<\/p>\n
\"I hope French automotive technology can contribute something
\nto Indonesia's national cars,\" Arthuis said, adding that he was
\nhappy to see many French-made cars, such as Peugeot, Renault and
\nCitroen, on Jakarta's roads.<\/p>\n
Arthuis said that he and Soeharto also discussed the recent
\nGroup of Seven summit meeting in Lyons, France, the promotion of
\nbilateral economic cooperation and debt write-off for poor
\nnations.<\/p>\n
Security group<\/p>\n
He added that France wanted to join the security group
\ninvolving the Association of Southeast Asian Nations (ASEAN). The
\ngroup is called the ASEAN Regional Forum (ARF).<\/p>\n
Indonesia will host an annual ARF meeting of foreign ministers
\nnext week. The European Union is one of the 21 members of ARF,
\nbut France wants its own seat.<\/p>\n
In Jakarta, Arthuis also met Minister of Finance Mar'ie
\nMuhammad, Coordinating Minister for Production and Distribution
\nHartarto and Minister of Foreign Affairs Ali Alatas.<\/p>\n
In a meeting with Alatas, Arthuis signed a document awarding
\nUS$50 million in French aid to finance electric,
\ntelecommunication and flood control projects in various parts of
\nIndonesia.<\/p>\n
The funds are part of a $100 million aid package that France
\npledged at last month's meeting of the Consultative Group for
\nIndonesia (CGI), of which France is a member.<\/p>\n
Established in early 1992 to replace the Dutch-led Inter-
\nGovernmental Group on Indonesia, the CGI is a group of nations
\nand multilateral agencies which provide aid to Indonesia. (rid)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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