The 19th APEC AD
APEC Automotive Dialogue has been serving as a forum for the member economy officials and senior industry representatives since its inauguration in 1999 in Indonesia. 15 years later, and in an effort to improve the liberalization of the automotive sector within the Asia-Pacific region, the APEC AD is back to Indonesia again. The 19th APEC AD and its First Workshop convened in Jakarta from 16 to 18 September, and were attended by delegates from the governments and industries of Australia, China, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Chinese Taipei, Thailand and the United States of America. The Society of Indian Automotive Manufacturers (SIAM) also took part in the meeting as a guest.

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  The dialogue, chaired by Dr.Budi Darmadi, Director General of Leading Industry Based on High Technology, Ministry of Industry of Indonesia, opened with the news on low cost green car (LCGC) incentive to spur further growth in the auto-industry in Indonesia.

Wide-ranging topics, from the latest update on the regional FTA to the progress harmonization of regulation and standard and others, were covered in a lively exchange of views during the 3-day event. Below are the major outcomes of each topic discussion.
The Free Trade Agreement (FTA) developments
Japan reported that it has joined the Trans-Pacific Partnership (TPP) negotiation during the Malaysia meeting in July 2013. Furthermore, Japan updated the recent development in promoting the comprehensive and wide-ranging ETA/FTAs – The negotiation of Trilateral FTA among China, Japan and Republic of Korean and Regional Comprehensive Economic Partnership (RCEP), inclusive of 10 ASEAN members, Australia, China, India, Japan, Republic of Korea and New Zealand. Other member economies also reported the progress of FTA negotiation in each country.
The Progress on Regulation and Standard Harmonization
On the technical front of the meeting, most of the member economies
reported their latest status on regulation and standard harmonization.
Japan reported the progress on its activities pertaining to the International Whole Vehicle Type Approval (IWVTA). The IWVTA, originally based on a 1958 Agreement, advances mutual recognition from the equipment and parts level to approval of the “whole vehicle”. As IWVTA related efforts move towards the establishment of a common international system, safer, more environmentally friendly vehicles will be supplied to the market at a cheaper price, which ultimately benefits the consumers. Among the progress reported, in particular worth-noting is the submission of the final draft of the revised 1958 Agreement in June at the WP.29, and the completion of the first draft of UNR0, which will in turn be submitted for consideration by WP.29 in November 2013. Both are timed for the adoption of IWVTA in 2016. Member economies are asked to confer with relevant authorities on the work in progress under the IWVTA initiative.
The 1st APEC AD Workshop
In conjunction with the APEC AD and the 21st Indonesia International Motor Show (IIMS), which took place from 19 September until 29 September at the JIExpo, Kemayoran, Centra Jakarta, the first APEC AD Workshop for the 8th Indonesia International Automotive Conference (IIAC) was held on 17 September 2013. The theme of the Workshop – “Green Car Development Facilitation”, was in line with the aim of promoting stronger and deeper economic cooperation, greater regulatory cooperation, as well as the sharing of information regarding the use of advanced technology in a Green Car. The Workshop has drawn approximately 90 delegates from the APEC delegations, local representatives from governments and industry, as well as the media.
The Vice-Chairman of the Association for Indonesia Automotive Manufacturers Association (GAIKINDO), Mr.Jongkie Sugiato, acknowledged that, “Indonesia’s Auto market is open to the idea of environmentally friendly cars program, sales are reaching more than one million annually, and that could stimulate the Indonesian economic”. Beneath the sales growth, the vanguard support of green policy mirrors the concerns of all stakeholders and automotive players.

A wide-range of topics from Green Car development, infrastructure expansion, technology, policy and regulations were presented in the meeting by 8 countries, namely the United State of America, Japan, South Korea and Indonesia in Section One, China, India, Thailand and Malaysia in Section Two.
The summary is as follows:
Country   Summary
USA   Delegates from the USA reiterated the importance of public and private sector collaboration and partnership in bringing advanced technologies to market. Harmonization of standards, such as the charging system for new automotive technologies, are required for a safe and sustainable development of the auto industry.
Japan   Introducing its development of charging infrastructures, Japan is targeting to achieve 2 million normal charges (NC) and 5 thousand quick chargers (QC) by 2020 through government’s efforts.
Korea   Represented by Hyundai Motor Group, Korea presented its latest development and commercialization of Fuel Cell Electric Vehicle (FCEV), targeted to be ready by 2015.
China   In order to tackle its air pollution problem brought by vehicle emission in the center cities, China introduced its development of New Energy Vehicles (NEV). The government issued a series of Policy System Framework containing technology innovation tax rebate in promoting the development of NEV.
India   National Mission of Electric / Hybrid Electric Vehicle under National Electric Mobility Mission Plan (NEMMP) 2020 were announced. To achieve the desired outcomes, the government will offer tax incentive policies, research & development (R&D) and the building of infrastructure.
Thailand   In order to remain as a leading auto industry player in the region, Thailand launched:
a. 20-Year Energy Efficiency Development Plan (2011-2030) and SMART GRID development(under Ministry of Energy),
b. 2021 Automotive Industry Roadmap and 2nd Eco-Car project (under Ministry of Industry),
c. New excise tax policy based on CO2 emission (under Ministry of Finance).
Malaysia   The newest version of National Automotive Policy 2013 (NAP3.0) will be announced soon. NAP3.0 will further enhance the competitiveness of the Malaysian automotive industry through tax incentive offerings to new investments on technology & engineering developments. The government will also work on auto parts supply chain building and human capital development for the supporting industry.
Indonesia   Low Cost Green Car (LCGC) program, which is based on technology usage and fuel efficiency, was introduced. A new program – Low Carbon Emission Project (LCEP) – that offers tax incentives based on CO2 output is currently under discussion. This will further enhance the sustainable development of the economics of Indonesia.
Amongst all the topics, the issue of fuel consumption was the most debated during the workshop. The global demand for oil consumption has been steadily rising for more than a century, causing the drain of oil resources in the world and making fuel prices increase. Concerns regarding the sustainability of our current oil supplies, as well as climate change which is causing environmental disasters, are encouraging more research and investment in advanced technology vehicle. Automakers have been surging back with new innovations and new technologies in bringing such advanced technology vehicles to market.
All economies emphasized the importance of cooperation between the government and the industry to develop advanced technology vehicles and facilitate the widespread use of those vehicles. The Workshop was a useful platform to engage all economies on issues that are important to the sustainable development of the automotive industry.
The Next APEC-AD
At the end of the dialogue, all economies expressed their appreciation of the high level of organization and hospitality offered by the Indonesian hosts of the 19th AD. The next AD will be held in April 2014 in Beijing, chaired by China.
(For details of the meeting, please refer to APEC’s website under September Meeting of the 19th Automotive Dialogue 2013:



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