Japan has initiated procedures to file a request with the World Trade Organization to set up a dispute settlement panel to examine Indonesia's national car policy, according to the Ministry of International Trade and Industry.
MITI said it notified the Geneva-based trade watchdog April 17 of its intention to call for the creation of the panel -- a step required for Japan to file a formal request at a meeting of the WTO's dispute-settlement body on April 30. During a news conference April 18, MITI chief Shinji Sato said Japan has already waited long enough for Indonesia to correct its car policy. "But no such improvement has been made and now we want to put an end to this long-pending issue," he said.
Jakarta's controversial auto policy grants 100 percent exemption from tariffs and luxury taxes to Pt Timor Putra Nasional, an automaker controlled by the youngest son of President Suharto. The policy allows the company to produce so-called national cars for up to three years.