RI lobbies USA and Japan over car policy
JAKARTA (JP): Indonesia will continue to lobby the United States and Japan to ensure that its controversial national car policy will not end up in front of the World Trade Organization (WTO), a senior minister said yesterday.
Minister of Industry and Trade Tunky Ariwibowo said that the government will continue to talk with Japanese and U.S. trade officials to amicably settle differences of opinions on the car policy.
"I will send senior officials to Washington to meet with the U.S. trade representative later this month," he said after a meeting with President Soeharto at Merdeka Palace.
Tunky said that Indonesia will renew talks with the Japanese government on the policy both at the senior official and ministerial levels.
"We don't have any fixed schedule with the Japanese officials. But we are ready whenever it is needed to talk over the car issue," he added.
The national car policy, introduced in February, gives PT Timor Putra Nasional, controlled by President Soeharto's youngest son Hutomo Mandala Putra, exclusive rights to develop the so- called national car.
The company, which will team up with Kia Motors of Korea to produce the car, has been granted pioneer status. The special status exempts the company from import duties and luxury taxes provided that the locally-made component content of the car reaches 60 percent by the end of three years of operation.
During the first year, however, the Timor car, as it is called, will be imported from Kia Motors until Timor Putra's assembling facilities are ready for production next year.
At least 50 Korean-made Timor cars are now on display at various shopping centers with price tags of Rp 35.75 million (US$15,235). Comparable Japanese makes of the same class generally cost Rp 65 million.
Japanese carmakers, who dominate the country's automotive market, strongly oppose the car policy and have threatened to bring the issue to the WTO.
Opposition has also come from U.S. and European car manufacturers, who accuse the program of violating the WTO's free trade principles.
A number of Indonesia's automotive companies, including the one owned by Hutomo's elder brother Bambang Trihatmodjo, have applied for similar status. Their applications have been turned down.
WTO meeting
Tunky announced that Indonesia will also actively participate in the WTO meeting in Singapore from Dec. 9 to Dec. 13 to ensure that any decision made during the meeting will not go against "our interests".
As a developing country, Indonesia should have the opportunity to develop sophisticated technology and engineering so it can catch up with the achievements of industrialized nations, he said.
"If we don't master the technology, we will continue to rely on foreigners," he said, adding that the country's national car project is part of the government's effort to master the technologies.(hen)