New tariff team unrelated to olefin protection debate

JAKARTA (JP): Two senior cabinet ministers yesterday reiterated their position on the formation of the country's new tariff team, saying that it is not related to the controversy over proposed protection for PT Chandra Asri's olefin project worth US$1.7 billion.

"Like I've said before, the President's decision to reshuffle the tariff task force has nothing to do with Chandra Asri," Minister/State Secretary Moerdiono told reporters after meeting with President Soeharto here yesterday.

In yesterday's meeting with Soeharto, Moerdiono was accompanied by Coordinating Minister for Industry and Trade Hartarto, the new chairman of the tariff team, which used to be chaired by Minister of Finance Mar'ie Muhammad.

"The President told me about the reshuffle of the tariff team early last month, long before the Chandra Asri executives went to the House of Representatives (DPR)," Moerdiono said.

The company's executives urged the DPR earlier this month to support their proposal for the imposition of a duty between 35 and 40 percent on imports of olefin products, the raw materials used for various downstream industries.

The request has subsequently led to a heated debate involving many business leaders, economic analysts as well as politicians.

Mar'ie

Minister Mar'ie, for example, has been reported as an opponent of tariff protection for the olefin project, which is backed by the Bimantara Group, Napan Group and Barito Pacific Group.

The debate was intensified further two weeks ago when the government reshuffled the team to replace Mar'ie with Hartarto as chairman. Other changes included Minister of Agriculture Sjarifudin Baharsjah, an assistant to the Coordinating Minister of Industry and Trade, and State Minister of Investment Sanyoto Sastrowardoyo as new members. Mar'ie is now vice chairman of the new line-up, which also includes old members Minister of Industry Tunky Ariwibowo and Minister of Trade Satrio B. Joedono.

"I will give further explanations about the new team in January, together with Mar'ie Muhammad," he said.

Hartarto did not mention whether a decision on Chandra Asri would be reached by then.

The minister said, instead, that the new team's basic duty is to "prepare the country's journey toward a free trade system of the ASEAN Free Trade Area, the conclusion of the last meeting of the Asia Pacific Economic Cooperation (APEC) forum and the General Agreement on Tariffs and Trade (GATT)."

Moerdiono also cited that the team would work towards more efficiency in the country's industrial sector from upstream to the downstream activities. (hdj)