Indonesian Political, Business & Finance News

Ending Japan domination

| Source: JP

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

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