Indonesian Political, Business & Finance News

Central Java and Yogyakarta Customs Grants KITE Facility

| | Source: REPUBLIKA Translated from Indonesian | Trade
Central Java and Yogyakarta Customs Grants KITE Facility
Image: REPUBLIKA

SEMARANG — Agus Yulianto, head of the Central Java and D.I. Yogyakarta Customs Regional Office, has approved an Export-Import Facility for Exemption (Kemudahan Impor Tujuan Ekspor Pembebasan, or KITE Pembebasan) for PT Soar Gold Candle. The approval was presented on Thursday, 15 October 2026.

Agus said the provision of customs facilities was one way Customs supported export-oriented domestic industries. “We hope the KITE Pembebasan facility will help the company optimise production costs and improve the competitiveness of its products. We encourage businesses to make use of customs facilities in accordance with the rules so they can develop their operations and expand access to international markets,” he added.

KITE Pembebasan is a customs facility that exempts imported raw materials from import duties and grants relief from Value Added Tax (VAT), or VAT and Luxury Goods Sales Tax, when those materials are processed, assembled or installed in other goods to produce items intended for export, in accordance with applicable regulations. The facility can reduce companies’ raw-material procurement costs, giving them more scope to improve efficiency and product competitiveness.

PT Soar Gold Candle produces aromatherapy and decorative candles in Tegal regency and is targeting export markets in France, Germany, Sweden and Poland. The market expansion is expected to create opportunities for candles made in Tegal regency to reach a broader consumer base in Europe.

The company’s business expansion could also boost employment and the regional economy. It employed 47 local workers in 2026, a figure projected to rise to 250 by 2030 as it expands its capacity.

The company’s investment is estimated at Rp18.5 billion in 2026 and is projected to increase to around Rp22.49 billion by 2030. The projections reflect plans to expand the business alongside increased production capacity and broader market reach.

Agus added that use of customs facilities must be accompanied by the fulfilment of administrative obligations and compliance with applicable regulations. This will ensure the benefits are fully used to support the company’s production and export plans.

“Customs is committed to providing services and assistance to businesses so they can understand customs requirements and use available facilities appropriately. We hope this support will help local industries grow sustainably, create jobs and contribute more to the regional economy,” Agus said.

By granting the KITE Pembebasan facility, the Central Java and D.I. Yogyakarta Customs Regional Office is continuing to strengthen its support for local industry. The initiative aims to help businesses grow and make Indonesian products more competitive in international markets.

View JSON | Print