Importer's boycott threat receives cool welcome

Importer's boycott threat receives cool welcome

JAKARTA (JP): The Association of Indonesian Importers' threat
to boycott Japanese goods over a dispute related to Indonesia's
national car policy received a cool response from local
businessmen yesterday.

Sofyan Wanandi, the chairman of the Gemala Group, said that a
boycott would not only be inappropriate but also ineffective to
deal with an international trade dispute.

"I think such a boycott does not make sense. We should avoid
being emotional in dealing with trade conflicts with other
countries," he said when asked to comment on the association's
call to boycott Japanese goods.

The association's chairman, Amiruddin Saud, said Wednesday
that it would boycott Japanese goods if Japan retaliated against
Indonesia's controversial national car policy.

Japan, together with the United States and the European
Community, has formally filed a complaint on the national car
policy with the World Trade Organization.

Under Indonesia's new car policy, producers of a "national
car" are granted exemptions from the import duties and luxury
taxes that add about 60 percent to the prices of cars in
Indonesia, as long as the local content of their cars reaches 20
percent by the end of the first year and 60 percent by the end of
the third year.

PT Timor Putra Nasional, a firm controlled by President
Soeharto's son Hutomo (Tommy) Mandala Putra, is the only company
allowed to become a national car producer and so receive the tax
incentives.

Sofyan, also chairman of Yayasan Prasetya Mulya, a social
foundation owned by a number of Indonesian conglomerate owners,
said that the planned boycott would only hurt the Indonesian
economy.

Soedarpo Sastrosatomo, the chief commissioner of PT Samudera
Indonesia shipping company, shared the same view with Sofyan.

Soedarpo said that Indonesia, considering the current state of
its economy is still too weak to initiate a boycott when dealing
with trade conflicts with developed countries.

"I don't think it would solve the problem. It will instead
hurt our economic activities," he said, hoping that the two
countries' governments would be able to solve the car dispute
amicably.

Unlike the two businessmen, M. Sadli, one of Indonesia's most
senior economists and a former cabinet minister, said that the
association's threat is understandable.

"Well... it is just all right if it is only a threat," he
said.

Sadli refused to comment further on the subject, saying that
it is too premature to discuss measures that should be taken by
Indonesia when facing possible retaliation from Japan.

"Consultation between the two governments about the car
dispute are ongoing. So it is too early to show our position," he
said.

In August last year, the association threatened to boycott
Australian goods if the Australian government failed to prevent
the burning of Indonesian flags during protests against the
Indonesian policy on East Timor. The threat was not carried out.
(hen)