Tunky praises PT Astra lobby effort<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
\nsaid yesterday PT Astra International's lobbying of its Japanese
\nprincipal, Toyota Motors Corp. in Tokyo, would help end criticism
\nof Indonesia's national car policy.<\/p>\n
Tunky was commenting on high-level lobbying by Astra
\nexecutives led by president commissioner Mohamad \"Bob\" Hasan.<\/p>\n
According to media reports Bob urged Toyota at Thursday's
\nmeeting to increase the local content of its cars assembled in
\nIndonesia.<\/p>\n
Tunky said the lobbying would help end the dispute over the
\ngovernment's national car policy.<\/p>\n
The government recently ended its consultations with the
\nUnited States, Japan and the European Union, which have accused
\nthe policy of violating World Trade Organization (WTO) rules. The
\ntalks were conducted bilaterally.<\/p>\n
According to the WTO's dispute settlement mechanism the issue
\nmust be resolved through a WTO panel.<\/p>\n
But until last month none of the three claimants had filed the
\ncase with the WTO panel.<\/p>\n
\"It's better if the issue does not reach the panel level,\"
\nTunky was quoted by Antara as saying.<\/p>\n
Bob left for Tokyo after he was appointed as Astra's new
\npresident commissioner Wednesday.<\/p>\n
Bob reportedly asked Japan to lay down its charges against the
\nnational car policy because Indonesia had a potentially huge
\nautomotive market which had yet to be tapped.<\/p>\n
The national car policy, issued last February, grants duty and
\ntax breaks to locally owned firms which make cars bearing
\nIndonesian names, have 20 percent local content by the end of
\ntheir first year of commercial operation and 60 percent by the
\nend of their third year.<\/p>\n
The government has appointed PT Timor Putra Nasional, owned by
\nPresident Soeharto's son Hutomo Mandala Putra, as the only
\nbeneficiary of the facilities during the next three years, to
\nmake national cars.<\/p>\n
Timor Putra cooperates with South Korea's Kia Motors Corp to
\nmake 1500cc Timor sedans in South Korea until their West Java
\nassembly plant is built.<\/p>\n
Astra assembles cars bearing Toyota, Honda, BMW, Daihatsu,
\nPeugeot and Isuzu brand names. (pwn)<\/p>",
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