Govt puts brakes on import of luxury cars<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Yusuf Kalla
\nissued a decree on Friday banning the import of luxury vehicles
\nin an attempt to reduce social friction.<\/p>\n
Ministerial Decree No. 49\/2000 bans the import of cars with an
\nengine capacity of 4,000 cc or more, and cars with a price tag of
\nUS$40,000 and above.<\/p>\n
Kalla said the decree was issued based on social
\nconsiderations, as the import of such luxury vehicles would
\nincrease social jealousy.<\/p>\n
\"In a nation with a per capita income of only $600 to $700,
\nsome people still insist on importing cars with price tags of Rp
\n1 billion ($135,000),\" he said during a media conference.<\/p>\n
Kalla said he was aware of the growing presence in the country
\nof luxury cars, which, according to him, could provide those less
\nfortunate with yet another reason to riot.<\/p>\n
He said despite the government's decision in July 1999 to
\nallow the import of completely built-up cars, the government felt
\nit necessary to limit the import of luxury cars.<\/p>\n
He said that last December the government called on all car
\ndealerships to stop importing luxury vehicles. \"But no one would
\nlisten to us.\"<\/p>\n
Tanjung Priok Police confiscated last week three Ferrari
\nillegally moved through the customs center in Tanjung Priok,
\nNorth Jakarta.<\/p>\n
Kalla said this led him to enact a strict ban on the import of
\nluxury cars to prevent social disturbances.<\/p>\n
The new ministerial decree will affect all vehicles with a
\npassenger capacity of less than 10 people.<\/p>\n
Sports utility vehicles with engine capacities of up to 5,000
\ncc will be allowed to be imported into the country as long as
\ntheir free-on-board prices do not exceed $40,000.<\/p>\n
The decree also requires all owners of imported built-up cars
\nto register their vehicles with the Directorate General of
\nMachinery, Electronics and Miscellaneous Industries.<\/p>\n
The vehicle owners must present a number of documents,
\nincluding vehicle identification number, testing certificates
\nfrom the Ministry of Communications, testing certificates from
\nthe vehicle's country of origin, a letter of guarantee from the
\nimporter of the vehicle and the vehicle's registration letter.<\/p>\n
Kalla said the decree did not violate the World Trade
\nOrganization's principle of an open market, as it did not
\ndiscriminate against any specific car brand.<\/p>\n
\"The import ban applies to any car brand and does not
\ndiscriminate against particular brands.\" (03)<\/p>",
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