Japan seeks compromise from RI on auto dispute<\/p>\n
MANILA (AFP): Japanese International Trade and Industry
\nMinister Shinji Sato on Wednesday made a strong demand for
\nIndonesian compromise over a bilateral auto dispute, ministry
\nofficials said.<\/p>\n
Sato made the remarks during a meeting with Tunky Ariwibowo,
\nIndonesia's minister of trade and industry, on the sidelines of
\nthis year's summit of Asia-Pacific Economic Cooperation (APEC) in
\nthe Philippines.<\/p>\n
\"There has not been any single proposal from Indonesia,\" Sato
\nwas quoted by the officials as telling his Indonesian
\ncounterpart.<\/p>\n
\"It was extremely regrettable,\" Sato said. \"Indonesia really
\nneeds to take action and make efforts to solve the problem.\"<\/p>\n
In October, Tokyo lodged a complaint with the World Trade
\nOrganization (WTO) in Geneva over Indonesia's granting import tax
\nexemptions to designated \"national cars.\"<\/p>\n
Japan, along with the United States and the European Union,
\nmaintains the Indonesian auto program violates international
\ntrade rules.<\/p>\n
Sato warned that Tokyo would upgrade its complaint to a panel
\nunder the WTO's auspices if Jakarta continues insisting on its
\nstance.<\/p>\n
\"We cannot help but take the step to a WTO panel,\" Sato told
\nAriwibowo.<\/p>\n
\"As time is limited, a new proposal is really needed from the
\nIndonesian side.\"<\/p>\n
The issue is now under bilateral discussion at the Geneva-
\nbased organization. Officials said Japan would finish those
\ndiscussions possibly in early December and appeal to the panel as
\nearly as January.<\/p>\n
Ariwibowo refused to make an immediate reply to the Japanese
\nwarning, only saying his country \"would make an effort.\"<\/p>\n
A senior Japanese official said: \"We have been really
\nirritated as Indonesia appears to have no intention of solving
\nthe issue. We do not need sincerity. We need something concrete,
\nor progress.\"<\/p>\n
The complaint followed Jakarta's decision to allow cars made
\nby South Korea's Kia Motors Corp. for PT Timor Putra Nasional to
\nbe sold without the levying of import duties and luxury taxes
\nimposed on other auto makers.<\/p>\n
Japanes auto makers, most notably Toyota Motor Corp., dominate
\nthe Indonesian car market.<\/p>\n
A decree issued by President Soeharto in February ruled that
\nproducers of a so-called national car would be granted exemptions
\non import duties and luxury taxes, which add about 60 percent to
\nthe price of other cars in Indonesia.<\/p>\n
PT Timor -- controlled by Soeharto's youngest son Hutomo
\nMandala Putra -- was chosen as the first national car supplier
\nand is required to clear an eventual goal of a local content
\nexceeding 60 percent.<\/p>\n
Indonesia is Asia's second largest vehicle market after
\nThailand, reaching 380,000 units in 1995, with Japanese markers
\nholding 90 percent of the market.<\/p>\n
But Japanese automakers have seen their sales plunge since the
\ncar plan was announced in February as Indonesian consumers waited
\nfor the Timor, which sells for about half the price of a foreign
\nsedan.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-seeks-compromise-from-ri-on-auto-dispute-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}