Anticipating the worst

As has been reported, General Motors Corp., a giant American car producer, is suspending its plans for additional investments in Indonesia. The company previously invested US$110 million for the assembly of Cherokee and Opel Blazer vehicles.

Ironically, the announcement by the company's chief of Asia and Pacific operations, Donald Sullivan, was made at the same time as his announcement of the company's plan to invest $750 million in Thailand for the manufacture of a "car for Asia". Thailand is a potential major competitor of Indonesia in the marketing of goods and services and in attracting investments from the global market.

The suspension of additional investments in Indonesia, according to Sullivan, is because General Motors "has been very disappointed by recent developments in the national car (program) because it truly creates an unlevel playing field". Presidential Decree no. 2/1996, which grants tax exemptions to only one producer to manufacture a "national car", was named as the reason for this uneven competitive condition in the national car market.

To mention all this is not to say that they are right. Our interests and theirs will always be different. We also could say that all that does not interest us. The fact is that even though for almost two decades world-class car producers have been given the chance to do business in this country, nothing meaningful has been accomplished by them in terms of supporting the growth of a national car industry.

The problem, however, is that it is often not possible for us to look at things that simple. In the present wide-open world economy, when competition has become so fierce and transparent and the interconnection between one interest and another is often not very clear, it is impossible for us to view things only in terms of black or white.

With regard to our car manufacturing policy which has received strong reactions from a number of our trading partners, our interest is in minimizing any possible damage. That means that, if we are confident that we are on the right track with this policy and that it will benefit our economy, then we must implement it in all earnest. Of course we cannot simply ignore our trading partners' objections, their complaints and disappointments. That could cause new problems that are just as knotty as the present one.

Even more, perhaps we must prepare ourselves to face the worst -- if Japan does take the case to the World Trade Organization or if the U.S. persists in rejecting our views. Just one question: Do we, for example, have lobbyists to soften America's stance, or good lawyers to repel any charges that might be made against us on an international forum?

-- Kompas, Jakarta