RI seeking solution to car dispute<\/p>\n
JAKARTA (JP): Indonesia would rather seek a bilateral solution
\nwith Japan than involve the World Trade Organization (WTO) in the
\ncontroversy over Indonesia's national car policy.<\/p>\n
\"It's up to them (Japan) whether they want to bring the issue
\nto the WTO or not. However, I want to stress here that Indonesia
\nprefers solving this problem bilaterally,\" Minister of Industry
\nand Trade Tunky Ariwibowo said at his office yesterday evening.<\/p>\n
Tunky, who visited Japan on April 9 and April 10 to explain
\nthe new policy, said that senior industry and trade officials
\nfrom the two countries will hold meetings to discuss the new
\nautomotive policy.<\/p>\n
However, he gave no exact date for the planned meetings.<\/p>\n
Yesterday morning, Tunky reported to President Soeharto on his
\nrecent visit to Japan, where he met Japanese Foreign Minister
\nYukihiko Ikeda and Minister of International Trade and Industry
\nShunpei Tsukahara.<\/p>\n
Tunky said the two Japanese ministers are concerned that
\nseveral points of the new policy are against WTO regulations.<\/p>\n
\"I told them that we had studied and taken into consideration
\nWTO rules before issuing the new automotive policy,\" Tunky said.<\/p>\n
The government announced in February that it was scrapping
\nimport duties on components and luxury sales taxes for local car
\nmakers able to meet local-content requirements and other
\nconditions.<\/p>\n
It announced later that PT Timor Putra Nasional, controlled by
\nPresident Soeharto's youngest son Hutomo Mandala Putra, would be
\nthe only company to receive the tax and tariff breaks.<\/p>\n
On the new policy, Japanese Ambassador to Indonesia Taizo
\nWatanabe said recently that his government does not oppose
\nIndonesian's national car policy, but objects to the way it is
\nbeing implemented. He argued that the policy does not conform to
\nstandards of transparency, equity or fairness.<\/p>\n
Tunky said yesterday that Japan has asked Indonesia to ensure
\nthat the new policy does not harm the existing car companies
\nhere, many of which are allied with Japanese auto firms.<\/p>\n
Japanese vehicles dominate Indonesia's automotive market with
\na share of more than 90 percent.<\/p>\n
Similar concern<\/p>\n
Tunky said the United States, which also has automotive
\ninterests in Indonesia, has expressed similar concern with the
\nnew policy. \"We have answered their questions, which are similar
\nto Japan's.\"<\/p>\n
He said he has told Japan and the United States that the new
\npolicy is aimed at making Indonesia's automotive industry more
\nindependent.<\/p>\n
Indonesia has long suffered a lopsided trade balance in the
\nautomotive sector. Imports of automotive products hit US$3.6
\nbillion last year, or about 10 percent of the country's total
\nnon-oil imports. Meanwhile, exports of automotive products were
\nless than $250 million.<\/p>\n
\"They understand the background and the objectives of our
\nnational car program. And we (Indonesia and Japan) have agreed to
\nhold further talks to register the effects of the policy and find
\nthe possible solutions,\" Tunky said.<\/p>\n
In the planned meetings, he said Indonesia will consider all
\noptions, including new incentives for existing car assemblers, to
\nsolve any problems that may arise.<\/p>\n
PT Toyota Astra Motor, a joint venture between PT Astra
\nInternational of Indonesia and Toyota Motors of Japan, has
\nproposed that the government extend new incentives to the
\nexisting car firms, especially those which produce commercial
\nvehicles.<\/p>\n
\"We are open to all possible options to solve the problems as
\nlong as they do not disrupt our national car program,\" Tunky
\nsaid. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-seeking-solution-to-car-dispute-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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