Tunky expects Seoul's support in car case
Tunky expects Seoul's support in car case
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
said yesterday that he believed South Korea would back Indonesia
in an international dispute over its national car policy.
Tunky said the Korean ambassador had recently told him that
his government would help Indonesia to settle its automotive
dispute with Japan, the United States and the European Union.
In relation to newspaper reports that Seoul planned to
formally protest against Indonesia's car policy, Tunky said: "I
am really not aware if South Korea would also file a complaint at
the World Trade Organization (WTO) against Indonesia's national
car policy," he said .
Tunky said the Korean ambassador told him recently that his
government was interested in joining Indonesia's bilateral
consultations with the three complainants.
According to WTO rules, he said, a third party is allowed to
join bilateral consultations. "The ambassador said he would help
us. But for sure, I have to check the subject again with the
ambassador," he added.
Reports from Tokyo last week quoted a Japanese official as
saying that South Korea was backing Tokyo at the WTO and would
file a similar complaint against Indonesia's car policy.
Japan, the United States and the European Union lodged
complaints in the WTO against Indonesia last month.
The three complainants agreed to participate in bilateral
talks on the car conflict with Indonesia before taking the case
to WTO's dispute settlement body.
Under the national car policy introduced in February,
producers of "national cars" are granted exemption from import
duties and luxury taxes that add about 60 percent to the price of
cars in Indonesia.
PT Timor Putra Nusantara, controlled by Soeharto's youngest
son, Hutomo Mandala Putra, is the only company qualified to
produce the so-called national car and to receive the tax break.
The company, which will produce the car in cooperation with
South Korea's Kia Motors, is allowed to import the car from Kia
until the firm's own production factory becomes operational in
1998. (hen)