Tunky praises PT Astra lobby effort

Tunky praises PT Astra lobby effort

JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
said yesterday PT Astra International's lobbying of its Japanese
principal, Toyota Motors Corp. in Tokyo, would help end criticism
of Indonesia's national car policy.

Tunky was commenting on high-level lobbying by Astra
executives led by president commissioner Mohamad "Bob" Hasan.

According to media reports Bob urged Toyota at Thursday's
meeting to increase the local content of its cars assembled in
Indonesia.

Tunky said the lobbying would help end the dispute over the
government's national car policy.

The government recently ended its consultations with the
United States, Japan and the European Union, which have accused
the policy of violating World Trade Organization (WTO) rules. The
talks were conducted bilaterally.

According to the WTO's dispute settlement mechanism the issue
must be resolved through a WTO panel.

But until last month none of the three claimants had filed the
case with the WTO panel.

"It's better if the issue does not reach the panel level,"
Tunky was quoted by Antara as saying.

Bob left for Tokyo after he was appointed as Astra's new
president commissioner Wednesday.

Bob reportedly asked Japan to lay down its charges against the
national car policy because Indonesia had a potentially huge
automotive market which had yet to be tapped.

The national car policy, issued last February, grants duty and
tax breaks to locally owned firms which make cars bearing
Indonesian names, have 20 percent local content by the end of
their first year of commercial operation and 60 percent by the
end of their third year.

The government has appointed PT Timor Putra Nasional, owned by
President Soeharto's son Hutomo Mandala Putra, as the only
beneficiary of the facilities during the next three years, to
make national cars.

Timor Putra cooperates with South Korea's Kia Motors Corp to
make 1500cc Timor sedans in South Korea until their West Java
assembly plant is built.

Astra assembles cars bearing Toyota, Honda, BMW, Daihatsu,
Peugeot and Isuzu brand names. (pwn)