RI lobbies USA and Japan over car policy
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)