Indonesia scheduled to host ASEAN meeting next month<\/p>\n
By Matthew Allen<\/p>\n
Vehicle emissions and safety standards, together with improved
\nregional trade, will be the major issues when the ASEAN
\nAutomotive Federation (AAF) convenes in Jakarta next month.<\/p>\n
It is the first time the region's national automotive
\nassociations have come together for a full AAF meeting since
\n1983.<\/p>\n
The chairman of the Indonesian Automotive Association, Herman
\nLatif, told Automotive Business and Motoring News that there were
\nmany issues which required attention.<\/p>\n
\"It has taken some time for the AAF to develop,\" Latif said.<\/p>\n
\"In 1983 the total ASEAN market was only about 500,000 units
\nand the policies of localization in each country were still not
\nin such a position that we could come to any workable solution.\"<\/p>\n
Latif said the region's growing vehicle markets now meant that
\nthe AAF had to become more active.<\/p>\n
\"The total ASEAN vehicle volume last year was 1.35 million and
\nwe are pretty sure that by the year 2000 the total ASEAN market
\nwill be close to 3 million.<\/p>\n
\"Another important factor now is that governments are going
\ntowards more free trade and it gives us room for real
\ncooperation.<\/p>\n
\"We cannot challenge the big three (General Motors, Ford and
\nChrysler) or the others but we need to maneuver so we can utilize
\ntheir networks and their potential.<\/p>\n
\"If we can cooperate within the ASEAN region we can gain more
\nin bargaining and use the ASEAN market as our bait.\"<\/p>\n
Vehicle safety and emission controls will also be high on the
\nAAF agenda.<\/p>\n
\"Sooner or later safety and emissions will make our
\ngovernments take emergency action or strong measures as these
\nproblems continue to affect society.<\/p>\n
\"Usually the government in this concern will decide and so I
\nthink that from the very beginning we most cooperate and assist
\nthe government in any policy regarding safety and emission
\ncontrol and to work for harmonization in the industry.<\/p>\n
\"We already have emission standards in Indonesia but due to a
\nlack of opportunity and manpower the government has only applied
\nthese to public transport vehicles, buses, trucks and taxis.<\/p>\n
\"Other Asian countries have developed European standards, but
\nas Japanese cars and trucks have 95 per cent of the Indonesian
\nmarket it will be safest for Indonesia to follow how the Japanese
\nregulate their safety and emissions.\"<\/p>\n
The introduction of unleaded fuel in six gasoline stations
\nlast October was one of the first steps toward addressing the
\nnation's emission problems, Latif said<\/p>\n
However, the introduction of exhaust-cleaning devices called
\ncatalytic converters on all new vehicles is still three to five
\nyears away.<\/p>\n
Latif said safety would be a very important issue for the
\nmeeting as many of the region's highways and roads have not been
\nupgraded to accommodate the growing volume of traffic.<\/p>\n
In Indonesia the first step for the industry will be the
\nintroduction of safety inspections for all vehicles.<\/p>\n
\"We may need inspections every six months for public transport
\nvehicles and every two or three years for new cars.<\/p>\n
Next year the government and the industry will be considering
\nnew measures, especially the use of safety belts.<\/p>\n
The AAF meeting will also build upon a series of preliminary
\nmeetings which discussed the successes and failures of the Brand-
\nto-Brand-Complimentation (BBC) scheme.<\/p>\n
BBC began in the ASEAN region in 1990 after agreement was
\nreached in 1988.<\/p>\n
It allows automotive components manufactured in ASEAN
\ncountries to be imported and exported within the region without
\ntariffs.<\/p>\n
However, it was limited to trade between the same companies
\nand a new scheme is set to change this.<\/p>\n
Latif said he expects the revival of the AAF will go a long
\nway toward shaping and directing ASEAN's future automotive
\npolicies.<\/p>\n
The meeting will be held over two days in Jakarta on July 25
\nand 26.<\/p>",
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"sponsor": "Okusi Associates",
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