Ruling on imports of used machines queried<\/p>\n
JAKARTA (JP): Local heavy equipment manufacturers called on
\nthe government here on Wednesday to review its recent move
\nallowing local companies to import used machines, machine tools
\nand capital goods.<\/p>\n
The association of Indonesian heavy equipment manufacturers
\nsaid here on Wednesday that the move would encourage local
\ncompanies to import used heavy equipment rather than buying new
\nproducts.<\/p>\n
\"It will affect our investment and production activities,
\nwhich are now in the recovery process,\" said Budhi Sayogo,
\ndirector of PT Komatsu Indonesia Tbk.<\/p>\n
The government issued a ruling in late April allowing local
\nusers to import a wide range of used heavy equipment, machines
\nand machine tools to help local industries cope with the soaring
\nprices of the capital goods.<\/p>\n
The association said the ruling would certainly undermine its
\nmembers's businesses because most of the used equipment which
\nwill be imported will compete with products manufactured at home.<\/p>\n
\"We expect the government will review the regulation so that
\nthe impact will be minimal,\" said Gunawan Setiadi, the director
\nof PT Hitachi Construction Machinery Indonesia.<\/p>\n
According to association members, the import facility should
\nbe limited only to used equipment or other capital goods, which
\nare not being produced in Indonesia.<\/p>\n
The producers fear that if the government maintained the
\nregulation, local users would switch to imported second-hand
\nproducts, which are much cheaper than new ones, Gunawan said.<\/p>\n
The association includes 15 heavy equipment producers, such as
\nPT Natra Raya, PT Swadaya Harapan Nusantara, and PT United
\nTractors Pandu Engineering.<\/p>\n
The industry, which operated at only about 20 percent of their
\nproduction capacity last year due to continuing low demand, has
\nshowed signs of recovery in the past several months on the
\nimprovement of the country's overall economy.<\/p>\n
The association expects that the average utilization level of
\nthe industry's production capacity will increase to 30 percent
\nthis year.<\/p>\n
These products are used mainly in the mining and forestry
\nsectors, since the local heavy equipment industry, especially the
\nconstruction sector, was badly hit by the economic crises that
\nbegan in 1997.(07)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ruling-on-imports-of-used-machines-queried-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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