Hashimoto won't bring up national car complaint

JAKARTA (JP): Despite lodging an international complaint over Indonesia's national car project, Japan's envoy to Jakarta yesterday said Prime Minister Ryutaro Hashimoto would not bring up the issue in Friday's meeting with President Soeharto.

Japanese Ambassador Taizo Watanabe claimed Tokyo was not planning to include it on the agenda of the bilateral talks.

"We're not thinking of it, unless the Indonesian side brings it up," he told journalists here yesterday.

Taizo's reply came as a surprise as Japan, the United States and the European Union have lodged a complaint with the World Trade Organization over the discriminatory treatment given Indonesia's national car project, dubbed Timor.

Hashimoto left Tokyo yesterday for an eight-day tour of Southeast Asia which will encompass Brunei, Indonesia, Malaysia, Singapore and Vietnam.

He is scheduled to arrive here tomorrow and hold talks with Soeharto on Friday before flying to Hanoi the next day.

Watanabe underlined the importance of the meeting between Soeharto and Hashimoto saying it would the reaffirm the commitment to bilateral relations.

Watanabe strongly rejected suggestions that one of the reasons countries developed policies such as the Timor national car project was due to the lack of movement on technology transfer by some Japanese companies.

"Technology transfer is carried out by several companies. In Indonesia the case of Honda is most conspicuous," he said, referring to Honda motorbikes which reportedly have a 40 percent local content.

"It takes time but I'm glad it's being done by Japanese manufacturers despite the adverse media coverage," Watanabe said.

Separately, Indonesian Minister/State Secretary Moerdiono said the aim of the visit was to enhance mutual understanding, bilateral ties and cooperation between the two countries.

Japan is of highly strategic economic interest to Indonesia. Apart from being the largest aid donor and foreign investor, it is also Indonesia's trading partner.

Moerdiono said annual two-way trade stands at between US$13 to $18 billion.

Reports from Tokyo say that during his visit to the region Hashimoto is to suggest the possibility of holding periodic summits between Japan and the Association of Southeast Asian Nations (ASEAN).

Indonesian foreign minister Ali Alatas told journalists Jakarta would need time to study the proposal first.

When queried on Indonesia's position on Japan and Germany's desire to seek a permanent seat in the United Security Council, Alatas responded positively saying the two "ought to be considered".

"Indonesia does not see any objection to adding a few more permanent members," he said.

However Alatas once again stressed the addition should take into consideration developing countries, otherwise apart from China, there would be "no representative from the developing world".

The UN Security Council is comprised of five permanent members -- Britain, China, France, Russia and the United States -- and 10 non-permanent members elected for two-year terms.

Indonesia has indicated its desire for a permanent seat.