France supports RI's controversial car policy
JAKARTA (JP): The French government has not joined other developed countries in pressing Indonesia to change its controversial national car policy.
Visiting French Economy and Finance Minister Jean Arthuis said yesterday that he had discussed many issues, including the national car policy, with President Soeharto.
"In a transitional period (towards the free market), it is normal for a country to make adjustments which sometimes deviate from free market principles," Arthuis told journalists after meeting Soeharto and Coordinating Minister for Economy and Finance Saleh Afiff.
The Indonesian government in February granted tax and tariff breaks to PT Timor Putra Nasional, which is controlled by Soeharto's youngest son Hutomo Mandala Putra, to build "national cars" in cooperation with Kia Motors Corp. of South Korea.
The move has been sharply criticized by Japan, the United States and the European Union for violating World Trade Organization (WTO) provisions.
Japan on Tuesday again threatened to take Indonesia to the WTO over its policy. Meanwhile, the United States said it was ready to join other countries taking Indonesia to the WTO if it failed to resolve the issue through consultation.
Arthuis, who ended his two-day official visit yesterday, took a softer line on the car policy, saying that France could contribute to Indonesia's national car program.
"I hope French automotive technology can contribute something to Indonesia's national cars," Arthuis said, adding that he was happy to see many French-made cars, such as Peugeot, Renault and Citroen, on Jakarta's roads.
Arthuis said that he and Soeharto also discussed the recent Group of Seven summit meeting in Lyons, France, the promotion of bilateral economic cooperation and debt write-off for poor nations.
Security group
He added that France wanted to join the security group involving the Association of Southeast Asian Nations (ASEAN). The group is called the ASEAN Regional Forum (ARF).
Indonesia will host an annual ARF meeting of foreign ministers next week. The European Union is one of the 21 members of ARF, but France wants its own seat.
In Jakarta, Arthuis also met Minister of Finance Mar'ie Muhammad, Coordinating Minister for Production and Distribution Hartarto and Minister of Foreign Affairs Ali Alatas.
In a meeting with Alatas, Arthuis signed a document awarding US$50 million in French aid to finance electric, telecommunication and flood control projects in various parts of Indonesia.
The funds are part of a $100 million aid package that France pledged at last month's meeting of the Consultative Group for Indonesia (CGI), of which France is a member.
Established in early 1992 to replace the Dutch-led Inter- Governmental Group on Indonesia, the CGI is a group of nations and multilateral agencies which provide aid to Indonesia. (rid)