Tunky visits U.S. to explain trade, industry policies
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo left last night for the United States on a mission to explain the government's industry and trade policies, including the controversial national car program, to Washington.
Tunky told journalists here that his five-day official visit, starting on Monday, will include meetings with, among others, the U.S. commerce and agriculture secretaries.
"We will explain it but not in a specific manner," Tunky said when asked whether he would explain to the U.S. administration the details of Indonesia's national car program.
He also plans to meet with the American Automobile Manufacturers Association, which groups three powerful U.S. auto makers: Chrysler Corporation, Ford Motor Company and General Motors Corporation.
The association's chairman, Andrew H. Card, Jr., who visited Indonesia last month, warned that his organization would consider taking Indonesia to the World Trade Organization (WTO) if the latter continues with its national car program which, Card said, contradicts free market principles.
Tunky said he and his counterpart will sign a trade and investment framework agreement, with which both governments are expected to solve their possible bilateral differences related to trade and investment.
Meanwhile, Reuters reported from Tokyo yesterday that Japan's Trade Ministry said it would continue talks with Indonesia on its "national car" policy but thought taking the issue to the WTO might be one way to resolve it.
The two governments held negotiations on Thursday in Kuala Lumpur, Malaysia, on Indonesia's car industry policy, which Japan has also said breaches WTO rules.
"We have not come up with any solutions and both sides agreed that we would continue talks," a Trade Ministry official said.
"Although we will have bilateral talks for the time being, we are also considering taking the issue to the WTO."
The official said the date for the next talks had not yet been decided.
Indonesia said in February it was scrapping import duties on components and the luxury sales tax for local carmakers able to meet local content and other requirements in order to help the country's car industry grow.
Indonesia said earlier this week that its "national car", to be built by PT Timor Putra Nasional, a company controlled by President Soeharto's youngest son, would be assembled in South Korea partly from components imported from Indonesia. As the national car, built by Indonesian workers abroad, it would get tax and tariff concessions.
Timor Putra is the only company to have been given pioneer status under the new scheme.
In a related development, the information and cultural attache at the South Korean embassy in Jakarta, Bong Hyup Chung, clarified yesterday that Korea's Alien Entry and Residence Law allows the foreign workers of Indonesian-Korean joint venture companies to obtain working visas for the purpose of technology transfer (training) in Korea.
"I think PT Timor Putra Nasional's workers who would be sent to Korea would belong to this category," Chung added in clarifying his statement on Thursday about Timor's plan to send 1,000 workers to the Kia Motors Corp.'s plant in Asan Bay, southwest of Seoul.
He added it is normal for countries to impose some restrictions on the entry of foreign workers to protect their own labor.
Meanwhile, AFP quoted a Kia Motors executive in Seoul as saying yesterday that his company would invite about 1,000 Indonesian workers as trainees --not as permanent employees-- to produce Timor sedans.
AFP also quoted a labor official in Seoul as stating that as far as labor laws were concerned there would be no problem about bringing in Indonesian workers and training them in Korea for a restricted period of time. (rid/vin)