France supports RI's controversial car policy
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)