WTO forum not expected to discuss RI's car policy<\/p>\n
JAKARTA (JP): The dispute between Indonesia and Japan over the
\nformer's national car policy is not scheduled to be discussed at
\nthe ministerial conference of the World Trade Organization (WTO)
\nin Singapore this December, according to a WTO executive.<\/p>\n
\"Individual disputes are not likely to be discussed at the
\nmeeting,\" the organization's deputy director general, Anwarul
\nHoda, said yesterday.<\/p>\n
Hoda is here to attend a three-day Asia-Pacific senior
\nofficials meeting, which started yesterday, in preparation for
\nthe WTO ministerial meeting.<\/p>\n
He refused to comment on Indonesia's car policy but noted that
\nIndonesia is not alone in pursuing an automotive initiative which
\nconcerns other countries. He cited Brazil and the United States
\nas another example.<\/p>\n
\"You know that the dispute is there and some parties are
\nexpressing concern and it is not wise for the (WTO) secretariat
\nto give any position... or to give its views on whose position is
\nstrong and on whose position is weak,\" Hoda said.<\/p>\n
When asked if Japan had filed the case with the WTO, Hoda
\nreplied: \"When I left Geneva yesterday, there had been no formal
\nmove from Japan.\"<\/p>\n
Japan, which controls more than 90 percent of the Indonesian
\nauto market, has criticized Indonesia's auto policy as
\ndiscriminating against foreign firms and has threatened to take
\nthe case to the WTO if Indonesia does not modify the policy.<\/p>\n
Under the policy, introduced last February, producers of a
\nnational car are granted exemption from import duties and luxury
\nsales taxes that add about 60 percent to the price of a car.<\/p>\n
PT Timor Putra Nasional -- a company controlled by President
\nSoeharto's youngest son Hutomo \"Tommy\" Mandala Putra -- was
\npicked as the first national car supplier and is required to
\nensure the cars' local content is at least 60 percent by the end
\nof the third year of production.<\/p>\n
In a joint venture with Kia Motors Corp. of South Korea, Timor
\nPutra is allowed to import its cars from South Korea for one
\nyear, until its own assembly facilities are ready.<\/p>\n
Some 2,000 cars made by Kia arrived at the Tanjung Priok port
\nin Jakarta last week.<\/p>\n
The importing of the cars, however, has been messy. They
\narrived without bank guarantees, as required by the government.
\nIn the absence of the guarantees, the government has not allowed
\nthe cars to clear customs.<\/p>\n
The cars are currently being stored at a private entrepot in
\nCengkareng, close to Soekarno-Hatta international airport.<\/p>\n
Director General of Customs and Excise Soehardjo Soebardi
\nclaimed yesterday that his office had never been formally
\ninformed about the importation of the duty-free cars.<\/p>\n
Bilateral<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo said yesterday
\nthat he would prefer to solve the dispute with Japan bilaterally
\nrather than seeing the issue taken to the WTO.<\/p>\n
He said he will discuss the national car policy with his
\nJapanese counterpart Shumpei Tsukahara later this month, when the
\nlatter is due here for a meeting of economic ministers from Japan
\nand the Association of Southeast Asian Nations.<\/p>\n
\"It is an opportunity to discuss the national car issue
\nagain,\" Tunky told journalists before the monthly full cabinet
\nmeeting.<\/p>\n
However, Tunky said, if Japan insists on taking the case to
\nthe WTO, Indonesia will be fully prepared. He believes that
\nIndonesia has not violated any trade agreements.<\/p>\n
Indonesian Minister\/State Secretary Moerdiono said Tuesday
\nthat should the matter be brought to the WTO, he hoped the
\ninternational body would conduct \"fair arbitration.\"<\/p>\n
\"All along, Indonesia has intended to produce a national car,\"
\nMoerdiono said, adding that \"we do not see any reason to change
\nthis policy.\"<\/p>\n
Meanwhile, economist Mari E. Pangestu was pessimistic
\nyesterday over whether Indonesia could win the case if it goes to
\nthe WTO.<\/p>\n
Japan argues that Indonesia is breaching most-favored nation
\nprinciples by allowing duty-free imports of cars from only South
\nKorea. However, Indonesia contends that, as a developing country,
\nit has the right to protect its infant industry.<\/p>\n
\"In terms of our infant industry argument, we have to prove
\nthat our 20-year old auto industry is still an infant. That's not
\neasy,\" Mari said.<\/p>\n
Tommy said in a statement yesterday that he believes Japan's
\nthreat to take Indonesia to the WTO will not materialize.<\/p>\n
\"The threat of taking the national car policy to the WTO will
\nonly be a matter of talk. Why don't the Japanese auto firms fully
\nmanufacture cars in Indonesia rather than wasting their time
\ntalking about the WTO,\" Tommy said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wto-forum-not-expected-to-discuss-ris-car-policy-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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