Protection for Chandra Asri still undecided
Protection for Chandra Asri still undecided
JAKARTA (JP): Speculation on whether PT Chandra Asri Petrochemical Center will win the government's tariff protection is still looming after the first meeting of the reshuffled tariff team did not decide the matter yesterday.
After a three-and-half-hour meeting, Coordinating Minister of Trade and Industry Hartarto, who chairs the new team, told dozens of journalists that protection was not a prime agenda in yesterday's meeting.
Tariff protection has become the subject of heated debates in the last few months following a proposal from politically-well connected Chandra Asri, the country's first olefin plant, for tariff protection of up to 40 percent against imports.
Amid controversy over the proposed tariff protection, the government announced last month the restructuring of the old team on tariff and fiscal affairs, which was formerly chaired by Minister of Finance Mar'ie Muhammad and had the Minister of Industry Tunky Ariwibowo and Minister of Trade Satrio B. Joedono as its members.
The new team has Hartarto as its chairman, Mar'ie as vice chairman and Tunky, Joedono, State Minister of Investment Sanyoto Sastrowardoyo as well as Minister of Agriculture Sjarifudin Baharsjah as members. All of them attended yesterday's meeting.
Dozens of journalists packed Hartarto's office trying to get information on Chandra Asri's case. Hartarto assured them the government will give the information about tariff protection demanded by Chandra Asri when the team finishes its evaluation on the case.
"We did not specifically discuss Chandra Asri today as its evaluation is still underway. We hope it will be finished soon," Hartarto said.
Answering a question on the possibility of giving tariff protection, Hartarto said the team will use President Soeharto's view on protection as a reference.
When presenting the draft state budget for the 1995-96 fiscal year before the House of Representatives earlier this month, Soeharto stressed to gradually reduce tariff protection for domestic industries.
He set three conditions for granting protection to domestic industries: It should be given for a limited period of time and should be gradually reduced; It must not be contrary to international trade agreements; Its level must not stifle or hinder the growth of downstream industries. (rid)