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)