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