Ship material duties lifted

JAKARTA (JP): The government has lifted duties on imports of 299 kinds of materials used for ship repairs and maintenance in a bid to support the development of the country's shipbuilding industry.

Agus Haryanto, spokesman for the Ministry of Finance, said yesterday that the Minister of Finance's Decree No. 192/1994 on the lifting of duties were retroactive to April 1.

He said the 299 materials used to be subject to import duties of five percent to 40 percent.

The materials include hydraulic motors for diesel engines, air compressors, heat exchangers, refrigerating plants, electric motors and fixed fire extinguishing systems.

Haryanto said that materials which are used for the construction of ship-related facilities, have been exempted from the duties.

"But the new exemption is not eligible for facilities for sports boats," he said.

The reason is because the two kinds of vessels are categorized as non-productive and make no contribution to economic growth, he said.(fhp)