Investment in electronics to jump

JAKARTA: The Ministry of Industry and Trade predicted that new investment in the electronic sector this year would reach around US$200 million, doubling last year's figure of $100 million.

Director for the electronics industry and IT at the ministry I Gusti Putu Suryawirawan said on Tuesday that the previous stimulus package launched by the government had encouraged investors to make fresh investment.

The government introduced a tax break facility earlier this year for various electronic goods in a bid to push sales and encourage new investment in the sector.

Suryawirawan said that plans by the government to lower the import tariff on raw materials to 10 percent was another factor that would boost investment.

"We hope the improvement in the tax system and the planned reduction in tariffs will lure new investment into the electronics sector," Suryawirawan said as quoted by Antara news agency.

He said that the new investment would mostly be in supporting industry such as electronic components.

Elsewhere, Suryawirawan said that electronics exports would reach $8 billion this year, compared to last year's $6.7 billion. -- JP