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.