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.