Govt allows importation of used machine, capital goods

JAKARTA (JP): Minister of Industry and Trade Luhut B. Pandjaitan has issued a decree to allow the importation of used machines, machine tools and capital goods.

The ministry said in a statement on Wednesday that the policy, which came into effect on Monday, was made in view of the weak purchasing power of local companies amid the lingering economic crisis.

The new policy was expected to revive the country's real sector, increase job opportunities and accelerate the country's economic recovery, the ministry said.

Under the new policy, local companies can buy used goods that fall in the categories of Harmonized System (HS) 82, 84, 85, 86, 87, 88 and 89.

The HS 82 category includes base metal tools, implements, cutlery, spoons and forks and their spare parts.

The HS 84 category includes nuclear reactors, boilers, machinery and mechanical appliances and their spare parts.

The HS 85 category includes electrical machinery and equipment; sound recorders and reproducers; television image and sound recorders and reproducers and their spare parts.

The HS 86 category includes railway or tramway locomotives, rolling stocks and traffic signaling equipment and their spare parts.

The HS 87 category includes vehicles other than railway or tramway rolling stock and their spare parts.

The HS 88 category includes aircraft, spacecraft and their spare parts.

The HS 89 category includes ships, boats and floating structures and their spare parts.

With regard to vehicles other than railway or tramway rolling stock, the ministry said local companies could only import used material with a gross volume weight (GVW) of more than 24 tons and more than 5 years old.

The ministry said secondhand goods could be imported by companies for use or reconditioning purposes provided they obtain certificates of inspection issued by surveyors stating that the goods were still useful and not scrap metal.

Former minister of industry and trade Yusuf Kalla issued a decree in late April, allowing the importation of secondhand machines, machine tools and capital goods.

But he quickly revoked the decree following protests from local manufacturers.

The Association of Indonesian Heavy Equipment Manufacturers then said the policy would encourage local companies to import used heavy equipment rather than buying their new products.

"It would affect our investment and production activities, which are now in the recovery process," Budhi Sayogo, director of PT Kamatsu Indonesia, a member of the association, said in May. (jsk)