Japan, RI to talk on car

Japan, RI to talk on car

TOKYO (Reuter): Japan and Indonesia plan to hold working-level
talks on April 29-30 on Jakarta's new car policy, Vice Trade
Minister Tomio Tsutsumi told a news conference yesterday.

"Our officials will go to Indonesia. The prospects of the
talks are still unclear, but we will explain the situation and
exchange opinions with them," Tsutsumi said.

Japan told Indonesia earlier this month Tokyo was concerned
that Indonesia's new industrial policy may violate World Trade
Organization rules.

Indonesia announced on Feb. 28 it was scrapping import duties
on components and a luxury sales tax to local car makers able to
meet local content and other requirements. The only company that
met the requirements was PT Timor Putra Nasional, controlled by
President Soeharto's youngest son.

"We don't know yet how we will handle the issue after the
talks. We will see the results of the meeting first," Tsutsumi
said.

He added that no date for government-level talks had been set
for talks with the United States on the disputed bilateral chip
trade pact, but said there were chances for the two trade
ministers to meet soon at various international conferences.
He did not elaborate.