Govt eases regulation on imports<\/p>\n
JAKARTA (JP): The government yesterday announced a new package
\nof deregulation measures to streamline the economy by
\nliberalizing the import sector in what it said is an
\n\"anticipation of post-Uruguay Round development in world trade\".<\/p>\n
The new measures cut down import duties on 739 kinds of goods,
\nremoved non-tariff barriers from 27 commodities and lifted
\nsurcharges from 108 other import items.<\/p>\n
Coordinating Minister for Economy and Finance Saleh Afiff said
\nthe new move is a follow up to the previous \"packages of
\nderegulation measures,\" including one issued in October 1993 and
\nthe latest ruling (PP20 of 1994) that significantly eased
\nrestrictions on foreign investment.<\/p>\n
\"The aim this time is not only sectoral, such as boosting
\ninvestment, efficiency and productivity, or to increase non-oil
\nexports, or to expand business and job openings, but to step up
\nthe whole spectrum of development activities directed to enhance
\nnational economic and resilience,\" Saleh Afiff said.<\/p>\n
The Coordinating Minister announced the rulings at Bina Graha
\nmoments after he and eight other ministers had a meeting with
\nPresident Soeharto.<\/p>\n
The other ministers were Coordinating Minister of Industry and
\nTrade Hartarto, Minister\/State Secretary Moerdiono, Tunky
\nAriwibowo (industry), S.B. Joedono (trade), Sjarifudin Baharsjah
\n(agriculture), Ibrahim Hasan (food), Subiakto Tjakrawerdaya
\n(cooperatives and small businesses) and Mar'ie Muhammad
\n(finance).<\/p>\n
Saleh Afiff said the government wants to gradually harmonize
\nthe tariff rates in Indonesia by reducing most of them, in step
\nwith GATT and AFTA (ASEAN Free Trade Area) agreements.<\/p>\n
Only a very low import duty will be charged on raw materials,
\nintermediate goods and capital goods to be used by the
\nmanufacturing industry. In many cases, this import duty was
\neliminated altogether.<\/p>\n
New projects will no longer be entitled to any commitment of
\ntariff escalation. Rather, they must comply with the going and
\nreduced tariffs.<\/p>\n
For the expansion of investment a new import facility has been
\nintroduced. Now, any firm intending to invest new money for the
\nexpansion of installed production capacity by at least 30 percent
\nis offered duty reliefs for the import of raw materials and
\nintermediate goods for up to two years.<\/p>\n
In the past, the two-year import duty relief was extended only
\nto investment expansion which was designed to produce different
\nproducts from different raw or intermediate materials. This
\nresulted in a tendency for firms to create a new firm in order to
\nqualify for the facility.<\/p>\n
Bonded zone<\/p>\n
In relation to bonded zone and Production Entrepot for Exports
\n(EPTE), from now on all assembling activities and lending of
\nmachineries and equipment by enterprises in bonded zones or EPTE
\nto companies outside the zone or EPTE as subcontractors are no
\nlonger prohibited for up to two years.<\/p>\n
Meanwhile a new rule helps a component manufacturers outside
\nbonded zones or EPTE (indirect exporters) to compete by allowing
\nthem to credit the Value Added Tax (VAT) on their raw materials
\n(inputs) against the VAT on their output sold to other industrial
\nusers in bonded zones or EPTE.<\/p>\n
The government said any price distortions caused by dumping
\nactivities by foreign parties will be prevented by anti-dumping
\npolicies.<\/p>\n
Under the new measures, the import duty will be eliminated on
\nagricultural products used as raw materials or intermediate goods
\nfor the livestock industry -- such as fish meal, shrimp meal,
\nbarley, peanut meal, soybean meal, sorghum, bone meal and meat
\nresidue.<\/p>\n
Tariffs on textile machinery and components are to be reduced
\nby 10 to 25 percent.<\/p>\n
Those on agricultural machineries are to be reduced between
\nfive to 20 percent.<\/p>\n
Import duties on machinery for small industries are to be
\nreduced to five percent of their former level or, in some cases,
\ntotally eliminated.<\/p>\n
Import tariffs on foreign assembled passenger cars and station
\nwagons are to be reduced by 25 percent, and semi-trailer spare
\nparts is to be reduced by 10 percent. The tariff on work vehicles
\nwill be completely eliminated.<\/p>\n
Import duties on components and sub-components for the
\nassembly of heavy-duty equipment are also to be completely waived
\nbeginning Jan. 1, 1995.(17\/vin))<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-eases-regulation-on-imports-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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