Sat, 03 May 1997

Ending Japan domination

Japan has finally made true its threat to take Indonesia's national car policy to the World Trade Organization (WTO). On April 30, their complaint was formally submitted to the organization, which will meet on May 23.

True enough, Japan is the country hurt most by the national car policy. The market for automotive products in Indonesia is largely controlled by Japanese manufacturers. The national car policy jeopardizes their economic interests. For many years Indonesia's automotive industry -- which mostly turns out Japanese products -- enjoyed huge profits because of breaks provided by the Indonesian government.

This kind of situation is precisely why the national car policy needs to change. It is unfortunate that this is considered discriminating, but it is a risk we have to take. This risk, however, can be brought to a minimum if producers of the Timor car can prove themselves by turning out a "national car", in the true sense of the word. If they succeed in doing this, the burden that the government has to bear will become much lighter.

-- Republika, Jakarta