Govt continues to seek abolition of export barriers

JAKARTA (JP): The government would continue to seek the abolition of barriers for Indonesian exports and bilateral solutions over its auto dispute with major trading partners, Minister of Industry and Trade Tunky Ariwibowo said yesterday.

Tunky, talking to journalists after reporting to President Soeharto, said a number of Indonesian exports had met various barriers, including standards imposed by importing countries.

"We are still working on a number of barriers with some countries. As you all know, our filleted tuna exports to Japan face some difficulties," Tunky said.

Japan claimed that Indonesia's filleted tuna contained too much carbon dioxide, Tunky said.

Indonesia's filleted tuna dominates Japan's tuna import market by 40 percent.

Tunky added that exports of food products to Australia also met some technical standards.

"Therefore, it is important for our exporters to understand such international standards, especially those affecting our exports," Tunky said.

He added Indonesia's textile exports to the European Union (EU) had faced antidumping duties, but now the duties had been removed thanks to persistent lobbies by the Indonesian Antidumping Committee.

The EU decided earlier this month to bury a plan to impose antidumping duties on unbleached cotton imports from China, Egypt, India, Indonesia, Turkey and Pakistan.

But the secretary of the antidumping committee, Aidil Juzar, warned yesterday that the EU executive would respond immediately to any renewed complaint by industry about alleged product dumping and would easily revive the provisional counterbalance duties.

Dispute

Tunky also said that the government would resume negotiations with Japan, the United States and the EU over its controversial car policy after the election process was finished.

Tunky said that Indonesia was well prepared for the talks and added that negotiations would start in early June.

The meetings would be held 'either in Jakarta or in cities of the negotiation partners' countries, he said.

"We will propose something and demand their comments and then see whether (what they want) can be accepted or not...it is a take and give," Tunky said.

President Soeharto in February 1996 ruled that producers of a so-called national car would be granted exemptions on import duties and luxury taxes, which add about 60 percent to the price of other cars in Indonesia.

PT Timor Putra Nasional, controlled by Soeharto's youngest son Hutomo Mandala Putra, was chosen as the national car supplier and is required to clear an eventual goal of a local content exceeding 60 percent by 1999.

Japan and the EU have each called for a panel at the World Trade Organization (WTO) to examine Indonesia's car policy. Indonesia has turned down their requests but under WTO rules must accept the panel if the countries ask again.

The United States, which also objects to Jakarta's so-called national car policy for allegedly flouting global trade rules, is still in preliminary discussions with Indonesia. (rid)