Jetro attacks RI policy

Jetro attacks RI policy

TOKYO (AFP): Japan External Trade Organization president Noboru Hatakeyama said yesterday that Indonesia's auto trade policy was a "clear violation" of the World Trade Organization's trade rules.

"The policy is in outright violation of the WTO's article one and two," the chief of the semi-government trade organization said during a meeting with reporters.

Jakarta said in February it would provide a series of tax breaks to PT Timor Putra Nasional, owned by President Soeharto's son Hutomo Mandala Putra, to produce a so-called national car with Kia Motors of South Korea.

The Japanese industry representative said Indonesia's decision was "not based on fair criteria" and its definition of domestic vehicles was "very peculiar."

His remarks coincide with a visit by Indonesian Minister for Trade and Industry Tunky Ariwibowo to Japan, who was scheduled to meet Japan's trade minister Shimpei Tsukahara late yesterday.