National car program to continue<\/p>\n
JAKARTA (JP): President Soeharto yesterday asserted that the
\ncontroversial national car program would go ahead, despite a
\nJapanese government decision to bring the policy before a World
\nTrade Organization panel.<\/p>\n
\"Indonesia is obviously disappointed by Japan's attitude which
\ndoes not accommodate our national interests whereas previously we
\nhelped Japan during the energy crisis,\" State Secretary Moerdiono
\ntold newsmen after a meeting with President Soeharto.<\/p>\n
Moerdiono said President Soeharto had ordered the cessation of
\nbilateral negotiations with Japan on the issue and has reasserted
\na determination to continue with the program.<\/p>\n
President Soeharto yesterday summoned nine ministers with
\neconomic portfolios to a special meeting on Japan's decision to
\nbring the dispute to the WTO.<\/p>\n
The ministers included Coordinating Minister for Production and
\nDistribution Hartarto, State minister of Research and Technology
\nB.J. Habibie, Minister of Industry and Trade Tunky Ariwibowo,
\nFinance Minister Mar'ie Muhammad, State Minister for Investment
\nSanyoto Sastrowardoyo, Governor of Bank of Indonesia Soedradjad
\nDjiwandono, and Minister\/State Secretary Moerdiono.<\/p>\n
Overall relations<\/p>\n
Moerdiono, however, said the Japanese move would not
\naffect the overall relations between the two countries.<\/p>\n
\"The Japanese move has strengthened our resolve to reduce our
\neconomic dependence on other countries,\" Moerdiono added.<\/p>\n
The national car program, launched early in 1996, grants tax
\nand duty exemptions to PT Timor Putra Nasional to produce sedans
\nbearing the Timor brandname.<\/p>\n
Since the company has yet to build an assembly plant, PT Timor
\nPutra was licensed by the President to import up to 45,000 fully
\nassembled Timor cars from its South Korean joint venture partner,
\nKia Motors Inc.<\/p>\n
In October 1996, Japan, the United States and European Union
\nfiled separate complaints to the WTO over the national car policy
\nwhich they allege is discriminatory and in violation of WTO
\nrules.<\/p>\n
Indonesia initiated separate bilateral negotiations with the
\nthree complaining parties in November 1996 under WTO supervision.<\/p>\n
\"We cannot understand why Japan has refused to understand our
\nnational car program,\" Moerdiono noted.<\/p>\n
According to Moerdiono, President Soeharto was disappointed
\nwith the Japanese move because the production of Timors was
\nnegligible compared to the output of Japanese cars.<\/p>\n
He said the U.S. and EU had also complained about the national
\ncar policy.<\/p>\n
\"But our negotiations with the U.S. are still proceeding,
\nwhile Japan has decided to bring the dispute to a panel,\" he
\nadded.<\/p>\n
President Soeharto, according to Moerdiono, instructed the
\nministers to make coordinated efforts to implement the national
\ncar program.<\/p>\n
\"The finance minister and the governor of Bank Indonesia have
\nbeen instructed to seek adequate financial packages for the
\nmanufacture of local components for the national car program,\"
\nMoerdiono said.<\/p>\n
He said despite Japan's request for a panel assessment of the
\ndispute, Indonesia still had adequate time to produce a national
\ncar.<\/p>\n
The process of WTO dispute settlement, including appeals, is
\nnot expected to be completed until 1999.<\/p>\n
\"The government is determined to develop a national car. After
\nall, Indonesia has been able to build airplanes and large sea
\nvessels,\" he said.<\/p>\n
Tunky said after meeting the President he would embark on a
\nfour-day visit to Japan to promote Indonesian garments and
\ntextiles.<\/p>\n
\"I also want to woo more Japanese investment in the
\nelectronics and automotive components in Indonesia,\" Tunky added.<\/p>\n
But Tunky said he would not discuss the national car policy in
\nJapan as President Soeharto has ordered the cessation of
\nbilateral negotiations on the issue. (06)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/national-car-program-to-continue-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }