Car dispute won't affect trade relations: U.S. official
Car dispute won't affect trade relations: U.S. official
JAKARTA (JP): The United States' opposition to Indonesia's
policy in the automotive industry would not affect bilateral
trade relations between the two countries, says a U.S. official.
Under Secretary of State Joan Spero told reporters here
yesterday that the U.S. government had no plans to tie the car
policy to other economic activities.
In February the Indonesian government granted tax and tariff
breaks to PT Timor Putra Nasional, a company controlled by
President Soeharto's son Hutomo Mandala Putra, for its "national
car" which will be produced in cooperation with Kia Motors of
South Korea.
"The national car policy will be negotiated separately and
there is no plan to relate it to other trade issues," Spero told
the journalists following a meeting with Indonesian Minister of
Industry and Trade Tunky Ariwibowo.
She said the U.S. government will not offer a compromise to
persuade Indonesia to change its controversial car policy.
Spero, who is here to accompany U.S. Secretary of State Warren
Christopher to attend the ASEAN Regional Forum, also questioned
the Indonesian government's commitment to limiting software
piracy and other issues related to intellectual property rights
in yesterday's meeting.
Tunky said that Indonesian and U.S. trade officials would meet
in Washington by the end of this month to further discuss the car
policy.
"But our stand is clear. We don't want to negotiate but to
explain our car policy," Tunky told journalists following the
meeting with Spero.
He emphasized that the Indonesian government would not change
its stand on the "national" car in the planned Washington
meeting, which will be held in the newly established Trade and
Investment Framework Arrangement (TIFA) forum.
The forum was established earlier this month to settle trade
conflicts between the two countries amicably.
Japan
In another development, visiting Japanese Foreign Minister
Yukihiko Ikeda said here Monday that the Indonesian government's
explanations on its car policy were still less than satisfactory.
However, the issue will not affect bilateral relations between
Japan and Indonesia, Ikeda said during a meeting with his
Indonesian counterpart Ali Alatas.
Ikeda said that it was necessary to bring the national car
project in line with international trade rules.
Japanese car makers, who dominate Indonesia's automotive
market, strongly oppose the car policy and are threatening to
bring the issue to the judicial arm of the World Trade
Organization (WTO).
Opposition also comes from U.S. and European car
manufacturers, which charge the Indonesian national car program
with breaking the WTO's free trade principles.
Timor Putra Nasional has introduced its "national car", called
Timor, in the domestic market, but deliveries can only be made in
November at the soonest.
A number of automotive companies, including one owned by
Hutomo's elder brother Bambang Trihatmodjo, have applied for a
similar tax facility, but were turned down. (hen)