Few firms take up forestry incentives<\/p>\n
JAKARTA (JP): Only 50 firms in forest-related industries have
\nused the export tax and nontax incentives the government
\nintroduced last year, a government official said yesterday.<\/p>\n
The director-general of agriculture and forest-related
\nIndustries Sujata said yesterday he expected more companies to be
\nusing the facilities by April.<\/p>\n
Last month the government announced that exporters of
\nprocessed food, pulp and paper products, processed rubber, fish
\nand frozen shrimp, vegetable oils and toys would be eligible for
\nexport tax and nontax incentives.<\/p>\n
This brings the number of product categories eligible for the
\nincentives to 10. The four which were announced last year were
\ntextile and textile products, electronics, wood and rattan
\nproducts, shoes and leather goods.<\/p>\n
Sujata said his office had just finished printing the
\napplication forms.<\/p>\n
\"So far companies that seem to be very eager to get these
\nincentives are those in the paper and rubber industries,\" he
\nsaid.<\/p>\n
He said many businesses were unaware of the facilities or did
\nnot understand their importance.<\/p>\n
\"This is the reason that only 50 forest-related firms have
\napplied for the facilities,\" Sujata said.<\/p>\n
In the four categories announced last year the government
\nlisted 334 eligible exporters.<\/p>\n
He said exports of agriculture and forestry-related industries
\nin the first nine months of last year were worth US$8.6 billion.
\nIn 1995, they reached $11.05 billion, up from $9.7 billion in
\n1994.<\/p>\n
The incentives are designed to boost non-oil exports. Nonoil
\nexport growth has declined in recent years.<\/p>\n
Under a ministerial decree issued last June, makers of
\nselected export commodities are entitled to incentives like
\ncredited import duties or faster drawbacks or repayments of
\nimport duties paid on imported raw materials and on value-added
\ntax paid on capital bought locally.<\/p>\n
Customs office post-audits must be done at least a year after
\ngoods are exported and harbor authorities may process export
\ndocuments without having to use a foreign exchange bank.<\/p>\n
Special desks and services are provided for document checking.<\/p>\n
Banking incentives for exporters include lower interest rates
\non rediscount facilities and longer-term use of letters of
\ncredit.<\/p>\n
An eligible company is entitled to special export facilities
\nfor two years. This entitlement may be extended if the company
\nmeets government requirements. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/few-firms-take-up-forestry-incentives-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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