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National cars are a bad idea

Article Abstract:

The Indonesian government announced plans to build a national automobile that would be exempt from high-tariffs on imported cars and will contain a high local content. PT Timor Putra Nasional will develop a car with Kia Motors that will eventually be exported. The strategy of producing a national car ignores the economic realities of the international automobile market. Malaysia has been unable to build an export market niche with its Proton automobile after ten years. PT Timor is controlled by the son of Indonesia's President Suharto.

Automobile industry, Government business enterprises, Public enterprises

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Market settles down

Article Abstract:

A scandal involving $6 million worth of forged stock certificates is the latest blow to investors' confidence in the Jakarta, Indonesia stock market. By bringing a halt to trading in five of the country's most active stocks, the scandal has perpetuated the market's risky image, acquired during its boom-to-bust phase in 1990-91. Many foreigners regard government regulation of the market as inept. Closure of some domestic stock brokerages and a depressed stock volume are likely in the short term.

Evaluation, Securities fraud, Jakarta Stock Exchange Inc.

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Flour power: Indonesia leaves monopolies intact

Article Abstract:

The continuing high tariffs imposed by Indonesia on products that compete with Bulog, the state-run commodities monopoly, suggest that the nation's tariff reduction measures are half hearted at best. While the country should be lauded for reducing tariffs on 6,030 items, its decision to continue to protect the collusive Bulog can only weaken Indonesia's international competitiveness.

Trade policy, Price fixing, Commercial policy, Government monopolies

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