Mixed reactions to deregulation package<\/p>\n
JAKARTA (JP): Businesspeople and legislators highly welcomed
\nyesterday the new reform package which slashes local taxes and
\nlevies and import tariffs in a substantial effort to reduce the
\ncost of doing business.<\/p>\n
But they criticized the exclusion of the automotive sector
\nfrom the tariff reduction measure and the ban of new loans for
\nland acquisition and land development.<\/p>\n
Indonesian Chamber of Commerce and Industry chairman Aburizal
\nBakrie praised the package as "relatively more progressive" than
\nthe previous one since it also covered the basic issues of local
\ntaxes and fees.<\/p>\n
"We are happy that the government further cut import tariffs
\nand local taxes and levies," said Aburizal on the sidelines of
\nthe Asia-Europe Business Conference.<\/p>\n
The package cut the number of local taxes from 42 to nine and
\nlocal fees or levies from 192 categories to 30 categories and
\nreduced tariff rates on 1,461 industrial goods, 136 agricultural
\nproducts and three health products.<\/p>\n
Aburizal, however, warned against new levies which might be
\ncreated by local administrations to replace the ones revoked.<\/p>\n
"We sincerely hope that local administrations will not create
\nnew levies to replace the old ones as they have in the past,"
\nsaid Aburizal, adding that Indonesians were quite innovative in
\ncreating illegal levies.<\/p>\n
In announcing the package of deregulation Monday, Coordinating
\nMinister for Economy and Finance Saleh Afiff said local taxes and
\nlevies\/fees would be levied only with the approval of the
\nMinistry of Home Affairs after consultation with the Ministry of
\nFinance.<\/p>\n
An economist from Ujungpandang's University WIM Poli, said the
\nderegulation package should be supported with a strong drive to
\nimprove the corrupt mentality of government officials who were
\npartly responsible for the high-cost economy.<\/p>\n
Poli said the lower tariffs would mean little in reducing
\ncosts if officials continued exhorting illegal payments from
\nbusinesses.<\/p>\n
Legislator Imam Churmen welcomed the liberalization of imports
\nof used fishing and cargo vessels, saying this would help develop
\nthe country's freighter services, support trade and the fisheries
\nindustry.<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo said the
\ngovernment had given enough time for domestic shipbuilders to
\nmeet market demand (by banning the importation of used ships) but
\nthey had failed to use that opportunity.<\/p>\n
The measure which allows sugar mill owners to import raw
\nsugar, which was previously monopolized by the National Logistics
\nAgency, for refining was also hailed by analysts.<\/p>\n
Aburizal greeted the simplification of export tax on palm oil
\nand the reduction of export tax rates to a range of 2 percent to
\n5 percent from a 10 percent to 20 percent previously as a boon to
\nthe palm oil industry. (jsk\/pwn\/31)<\/p>\n
City revenue -- Page 3<\/p>\n
Property -- Page 12<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/mixed-reactions-to-deregulation-package-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }