Duty on telecoms components lifted

Duty on telecoms components lifted

JAKARTA: The Ministry of Finance has issued a decree to exempt
raw materials and components for the manufacturing of some
telecommunication products from import duty.

The products include mobile communications network (MCN)
products such as boosters/boots and modulators; central station
products such as CDMAs and power supply units (PSU); and terminal
products such as keypad sets and transceiver assemblies.

Prior to the issuance of the decree, the government imposed a
zero tariff policy on telecommunications products for government
projects financed by foreign grants or loans, while local
companies that used their own funds or rupiah loans to import
such products were obliged to pay duty.

The new policy is aimed at promoting the development of the
local telecoms industry, the ministry said in a statement. -- JP