The AMEICC WG-AI organized a meeting for the representatives of governments and private sectors of ASEAN Member States (AMSs) and Japan to discuss the industrial cooperation, exchange of information and views surrounding each country’s automotive industrial policy. This year, the 15th annual meeting was held in Bali on 4th and 5th August 2014, and opened by Dr. Ir. Budi Darmadi, M.Sc, Director General of High Technology-Based Industries, Ministry of Industry, Indonesia.

The 15th AEM-METI Economic and
Industrial Cooperation Committee
(AMEICC)Meeting on Automobile
Industry (WG-AI)

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Speech by the Honorable Guest
During the opening speech, Dr. Budi stressed the importance of the meeting since its establishment in 1998. He noted how the meeting has helped in identifying and reducing both trade and technical barriers to effective and efficient integration of AMSes in the automotive sector. As such, Indonesia can continue to prepare for a better business climate in the automotive sector. Indonesia is also prepared as a global partner for business and ready to become a production base.

According to Dr. Budi, Indonesia has received a total investment flow of US$6.5 billion, consisting of US$3.5 billion in industrial assembly and US$3 billion in industrial components, after the Indonesian government launched a low-cost green car (LCGC) program that provides tax relief for automakers. This program will soon be followed by the low carbon emissions (LCE) program to further develop fuel efficiency and environmental sustainability in Indonesia.

Exchanging views on ASEAN Automotive Policies and Annual Report
After his speech, the Co-Chairmen of the meeting, Mr. Soerjono, Director of Land Transportation Equipment Industry, Ministry of Industry, Indonesia and Mr. Toru Asai, Director for Automotive International Trade Policy, Ministry of Economy, Trade and Industry (METI), Japan echoed, in their remarks, the significance of the AMEICC WG-AI to the cooperation between ASEAN’s auto industry and Japan’s.

Following this, the AMEICC Secretariat briefed all on the recent development of AMEICC activities and other related ASEAN-Japan cooperation initiatives, notably, the 1 billion Yen of supplementary budget which the Japanese government allocated to AMEICC activities.

Both Co-Chairmen requested that each of the AMSs give details on its annual report on sales and production, automotive policies, strategies and future development, followed by a market overview from the ASEAN Automotive Federation (AAF) as follows:

ASEAN Market Overview: Car Production Statistics
ASEAN Market Overview: Car Sales Statistics
Market Integration / Utilization of FTAs
The ASEAN Secretariat shared his view on the progress of the pilot project on self-certification and Rules of Origin (ROO) under ASEAN Trade in Goods Agreement (ATIGA). The First Self-Certification Pilot Project (1st SC PP) involving Brunei Darussalam, Malaysia, Singapore and Thailand will be extended to 31 December 2015. The Second Self-Certification Pilot Project (2nd SC PP) involving Lao PDR, Indonesia and the Philippines started on 1st January 2014. The ASEAN Secretariat has urged other non-participating member states to join the program earlier and reaffirmed its commitment to achieve an ASEAN-wide self-certification scheme by 2015. Recently, during the 46th ASEAN Economic Ministers’ (AEM) Meeting on 25 Aug 2014, Cambodia and Myanmar announced that they will join the 1st SC PP, while Thailand and Vietnam will join the 2nd SC PP.

The Japan Auto Parts Industries Association (JAPIA) stressed the importance of developing a user-friendly scheme to pursue trade facilitation in the region. It would be ideal to provide a choice between third-party certification and self-certification. The system should be widely used by the regional headquarters and trading companies, and re-invoicing in the third country should also be allowed, referring to the 1st SC PP as a model. JAMA reiterated the importance of establishing a business-friendly trading environment and further pursue trade facilitation at regional and international levels.

Japan also reported the current status of RCEP (Regional Comprehensive Economic Partnership) negotiations and the reasons to further promote the realization of unified EPA procedures. Through the realization of RCEP, the business environment will significantly improve under the establishment of a trans-national supply chain network in the region. In addition, market access to China and India will also be expedited. In order to achieve it, the desirable elements of ROO in RCEP, such as co-equal rule, full accumulation rule and third party self-certification system should also be adopted.

New proposal of cooperation on ASEAN road safety policies
A new proposal of cooperation on ASEAN road safety was presented by JAMA Safety Committee, in response to the increasing number of automobile-related accidents in ASEAN countries. To reduce the number of traffic accidents, and curb this worrying trend, JAMA introduced a “Triple Safety Approach”, comprising of three key areas – Road User Education, Safety Technology on Vehicles and Improvement of Infrastructure as key countermeasures.

JAMA will use the 1 billion Yen of supplementary budget to conduct the investigation of the Cause of Accidents initiatives and Road Safety Seminar in Indonesia, Malaysia and Thailand. Members showed their interest and welcomed the proposal by Japan.

At the end of the meeting, all AMSs expressed their appreciation of the high level of organization and hospitality offered by the Indonesian government. The next WG-AI will take place in Cambodia in 2015.


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