Indonesia urged to resolve auto dispute<\/p>\n
HONG KONG (AFP): European Commission Vice-President Leon
\nBrittan yesterday urged Indonesia to bring its national
\nautomotive policy into line with World Trade Organization (WTO)
\nrules.<\/p>\n
Brittan said he had personally told Indonesian President
\nSuharto that Europe did not believe Jakarta's national car policy
\nwas consistent with the WTO trade agreement.<\/p>\n
\"We very much hope that a resolution of the matter can be
\nfound whereby Indonesia brings itself into line with that
\nagreement,\" he told a World Economic Forum conference here.<\/p>\n
Europe, the United States and Japan filed complaints to the
\nWTO last month, saying that Indonesia's policy on its so-called
\nnational car flouted WTO trade rules.<\/p>\n
President Suharto in February ruled that producers of a
\nnational car would be granted exemptions on import duties and
\nluxury taxes, which add about 60 percent to the price of other
\ncars in Indonesia.<\/p>\n
Tunky Ariwibowo, Indonesia's minister of trade and industry,
\ntold the same conference that his country faced problems as a
\ndeveloping nation within the WTO.<\/p>\n
There were provisions within WTO rules, he said, for Indonesia
\nto have time \"to adjust part our economic policy to catch up with
\nthe developed world. \"<\/p>\n
Under the Indonesian policy, PT Timor -- controlled by
\nSuharto's youngest son Hutomo Mandala Putra -- has been named as
\nthe first national car supplier enjoying tax breaks.<\/p>\n
In a joint venture with Kia Motors, PT Timor is allowed to
\nimport the cars from South Korea until its own factory starts in
\n1998. It is required to clear an eventual goal of a local content
\nin the car exceeding 60 percent.<\/p>\n
The World Economic Forum, a Switzerland-based forum of
\nbusiness executives, government officials, bankers and economic
\nexperts, Monday started a three-day meeting focussing on ties
\nbetween Europe and East Asia.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-urged-to-resolve-auto-dispute-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}