RI told to revise car plan

RI told to revise car plan

TOKYO (AFP): The Japanese auto industry has urged Indonesia to reconsider its plans for a national car project, describing it as an "international concern," an industry leader said yesterday.

"We have asked for the reconsideration in a letter sent to the Indonesian government recently and expressed our deep concerns as well," Japan Automobile Manufacturers Association (JAMA) chairman Masami Iwasaki told a news conference.

"Since fair trade and competition should contribute to the end users in Indonesia, I strongly hope that its action will not lead to protection of specific companies," said Iwasaki, also deputy chairman of Japan's top car maker Toyota Motor Corp.

Jakarta said in February it would provide a series of tax breaks to PT Timor Putra Nasional, owned by President Soeharto's son Hutomo Mandala Putra, to produce a so-called national car with Kia Motors of South Korea.

All other sedans, including Japanese brands, assembled and sold in Indonesia face steep import and luxury goods taxes which add more than 60 percent to car prices.

"The issue is an international concern and it should be discussed at the World Trade Organization," Iwasaki said.