Customs procedures hamper shipbuilding<\/p>\n
JAKARTA (JP): State-owned docking and shipbuilding companies
\nsaid recently that customs procedures for importing engines and
\ncomponents and the high interest rates on domestic loans hinder
\ntheir competitiveness.<\/p>\n
\"Arduous customs procedures increase the costs of imports and
\noften cause delays in the delivery of ships,\" state-owned PT Dok
\nPerkapalan Koja Bahari's president, A. Wahid, told a hearing with
\nHouse of Representatives' Commission VI for industry yesterday.<\/p>\n
The directors of PT Dok Dan Perkapalan Surabaya which is based
\nin East Java and the Ujungpandang-based PT Industri Kapal
\nIndonesia also attended the hearing.<\/p>\n
PT Dok & Perkapalan Surabaya's president Sudarman Sellang and
\nLa Adrian Ifie, president of PT Industri Kapal Indonesia,
\nsupported Wahid's complaints, pointing out that the shipbuilding
\nindustry still relies mostly on imported materials, engines and
\ncomponents.<\/p>\n
Adrian also pointed out that domestic loan interest rates,
\nwhich currently reach as high as 20 percent, are much higher than
\nthat of overseas loans which average only 7 percent.<\/p>\n
Sudarman said that domestic shipbuilders are financially frail
\nand cannot afford to accept orders for big ships because buyers
\nusually make an advance payment of only 25 percent or less of the
\ntotal cost.<\/p>\n
However, Koja Bahari reported its great success last year in
\nwinning orders to build four Reefer ships from Sea Trade
\nGroningen BV of Holland with a total price of US$225.4 million.<\/p>\n
Wahid also complained that the January package of deregulation
\nmeasures did not provide equal treatment to all domestic
\nshipbuilding companies.<\/p>\n
He urged the government to exempt all domestic shipbuilders
\nfrom the value added tax and provide them with soft loans from
\nBank Indonesia (the central bank).<\/p>\n
Earlier reports said that another state-owned shipbuilding
\ncompany, PT PAL Surabaya, which is chaired by Minister of
\nResearch and Technology B.J. Habibie in his capacity as the
\nchairman of the Agency of Strategic Industries, has been exempted
\nfrom import duty on imports of components and materials. (kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/customs-procedures-hamper-shipbuilding-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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