RI lobbies USA and Japan over car policy<\/p>\n
JAKARTA (JP): Indonesia will continue to lobby the United
\nStates and Japan to ensure that its controversial national car
\npolicy will not end up in front of the World Trade Organization
\n(WTO), a senior minister said yesterday.<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo said that the
\ngovernment will continue to talk with Japanese and U.S. trade
\nofficials to amicably settle differences of opinions on the car
\npolicy.<\/p>\n
\"I will send senior officials to Washington to meet with the
\nU.S. trade representative later this month,\" he said after a
\nmeeting with President Soeharto at Merdeka Palace.<\/p>\n
Tunky said that Indonesia will renew talks with the Japanese
\ngovernment on the policy both at the senior official and
\nministerial levels.<\/p>\n
\"We don't have any fixed schedule with the Japanese officials.
\nBut we are ready whenever it is needed to talk over the car
\nissue,\" he added.<\/p>\n
The national car policy, introduced in February, gives PT
\nTimor Putra Nasional, controlled by President Soeharto's youngest
\nson Hutomo Mandala Putra, exclusive rights to develop the so-
\ncalled national car.<\/p>\n
The company, which will team up with Kia Motors of Korea to
\nproduce the car, has been granted pioneer status. The special
\nstatus exempts the company from import duties and luxury taxes
\nprovided that the locally-made component content of the car
\nreaches 60 percent by the end of three years of operation.<\/p>\n
During the first year, however, the Timor car, as it is
\ncalled, will be imported from Kia Motors until Timor Putra's
\nassembling facilities are ready for production next year.<\/p>\n
At least 50 Korean-made Timor cars are now on display at
\nvarious shopping centers with price tags of Rp 35.75 million
\n(US$15,235). Comparable Japanese makes of the same class
\ngenerally cost Rp 65 million.<\/p>\n
Japanese carmakers, who dominate the country's automotive
\nmarket, strongly oppose the car policy and have threatened to
\nbring the issue to the WTO.<\/p>\n
Opposition has also come from U.S. and European car
\nmanufacturers, who accuse the program of violating the WTO's free
\ntrade principles.<\/p>\n
A number of Indonesia's automotive companies, including the
\none owned by Hutomo's elder brother Bambang Trihatmodjo, have
\napplied for similar status. Their applications have been turned
\ndown.<\/p>\n
WTO meeting<\/p>\n
Tunky announced that Indonesia will also actively participate
\nin the WTO meeting in Singapore from Dec. 9 to Dec. 13 to ensure
\nthat any decision made during the meeting will not go against
\n\"our interests\".<\/p>\n
As a developing country, Indonesia should have the opportunity
\nto develop sophisticated technology and engineering so it can
\ncatch up with the achievements of industrialized nations, he
\nsaid.<\/p>\n
\"If we don't master the technology, we will continue to rely
\non foreigners,\" he said, adding that the country's national car
\nproject is part of the government's effort to master the
\ntechnologies.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-lobbies-usa-and-japan-over-car-policy-1447893297",
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"sponsor": "Okusi Associates",
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