Indonesia scheduled to host ASEAN meeting next month

By Matthew Allen

Vehicle emissions and safety standards, together with improved regional trade, will be the major issues when the ASEAN Automotive Federation (AAF) convenes in Jakarta next month.

It is the first time the region's national automotive associations have come together for a full AAF meeting since 1983.

The chairman of the Indonesian Automotive Association, Herman Latif, told Automotive Business and Motoring News that there were many issues which required attention.

"It has taken some time for the AAF to develop," Latif said.

"In 1983 the total ASEAN market was only about 500,000 units and the policies of localization in each country were still not in such a position that we could come to any workable solution."

Latif said the region's growing vehicle markets now meant that the AAF had to become more active.

"The total ASEAN vehicle volume last year was 1.35 million and we are pretty sure that by the year 2000 the total ASEAN market will be close to 3 million.

"Another important factor now is that governments are going towards more free trade and it gives us room for real cooperation.

"We cannot challenge the big three (General Motors, Ford and Chrysler) or the others but we need to maneuver so we can utilize their networks and their potential.

"If we can cooperate within the ASEAN region we can gain more in bargaining and use the ASEAN market as our bait."

Vehicle safety and emission controls will also be high on the AAF agenda.

"Sooner or later safety and emissions will make our governments take emergency action or strong measures as these problems continue to affect society.

"Usually the government in this concern will decide and so I think that from the very beginning we most cooperate and assist the government in any policy regarding safety and emission control and to work for harmonization in the industry.

"We already have emission standards in Indonesia but due to a lack of opportunity and manpower the government has only applied these to public transport vehicles, buses, trucks and taxis.

"Other Asian countries have developed European standards, but as Japanese cars and trucks have 95 per cent of the Indonesian market it will be safest for Indonesia to follow how the Japanese regulate their safety and emissions."

The introduction of unleaded fuel in six gasoline stations last October was one of the first steps toward addressing the nation's emission problems, Latif said

However, the introduction of exhaust-cleaning devices called catalytic converters on all new vehicles is still three to five years away.

Latif said safety would be a very important issue for the meeting as many of the region's highways and roads have not been upgraded to accommodate the growing volume of traffic.

In Indonesia the first step for the industry will be the introduction of safety inspections for all vehicles.

"We may need inspections every six months for public transport vehicles and every two or three years for new cars.

Next year the government and the industry will be considering new measures, especially the use of safety belts.

The AAF meeting will also build upon a series of preliminary meetings which discussed the successes and failures of the Brand- to-Brand-Complimentation (BBC) scheme.

BBC began in the ASEAN region in 1990 after agreement was reached in 1988.

It allows automotive components manufactured in ASEAN countries to be imported and exported within the region without tariffs.

However, it was limited to trade between the same companies and a new scheme is set to change this.

Latif said he expects the revival of the AAF will go a long way toward shaping and directing ASEAN's future automotive policies.

The meeting will be held over two days in Jakarta on July 25 and 26.