Tax exemption, visa-free entry into eastern Indonesia offered
Tax exemption, visa-free entry into eastern Indonesia offered
NUSA DUA, Bali (JP): The Indonesian government has taken
various measures to boost the development of eastern Indonesia,
including a clearance tax exemption and visa-free entry into the
region.
Minister of Communications Giri Suseso Hadihardjono announced
here at the end of the Australia Indonesia Development Area
(AIDA) ministerial meeting on Thursday that the clearance tax
exemption would apply to Indonesians traveling from eastern
Indonesian provinces, excluding Bali, to Australia.
The visa-free, short-term entry into Indonesia for foreigners
from specified countries, including Australia, covers almost all
international ports and airports in eastern Indonesia.
Giri also promised that the government would continue to
improve the investment climate in the region.
The government stated that it would open up the wholesale and
retail trade to foreign investors, and provide special incentives
for business activities in the Integrated Economic Development
Area.
In addition, the government will provide tax incentives for
certain pioneering industries, including a minimum five year and
maximum 12 year income tax exemption for industries located
outside of Java and Bali.
"We hope these incentives are attractive enough to bring
foreign investors into eastern Indonesia," Giri said after
cochairing the AIDA ministerial meeting with Australian foreign
minister Alexander Downer.
AIDA is a subregional economic zone linking northern Australia
with eastern Indonesia.
Giri said Indonesia accorded AIDA equal status as other
subregional economic zones, such as the Indonesia-Malaysia-
Singapore Growth Triangle, the Indonesia-Malaysia-Thailand Growth
Triangle and the Brunei-Indonesia-Malaysia-Philippines Growth
Triangle.
Under the AIDA scheme, Australian and Indonesian customs
offices are currently developing a customs preclearance facility
in Darwin, Northern Territory, scheduled to begin operation in
April.
The facility will enable Australian exports bound for eastern
Indonesia to enter the country quickly and proficiently,
requiring only that their documents be checked.
To facilitate trade and investment, Australia will also open
two new honorary consulates, one in Ambon, Maluku, and one in
Ujungpandang, South Sulawesi. Australia recently established
honorary consulates in Kupang, East Nusa Tenggara, and
Balikpapan, East Kalimantan.
In return, Indonesia has opened an honorary consulate in
Brisbane.
Australia also expressed interest in involving Australian
companies in Indonesia's interisland system of transportation.
Australian Minister for Transport and Regional Services Nick
Minchin said that if allowed, his country had the capacity to
serve various interisland routes in Indonesia with ferries.
Giri and Downer said in a joint statement that they agreed to
explore the possibility of streamlining the process for
Australian and Indonesian firms entering joint ventures in the
transportation sector.
Australia was also eager to receive clarification of
Indonesia's laws relating to leased vessels.
"Particular priority will be given to an examination of the
prospect of enhancing Indonesia's ferry system through the
leasing of Australian ferries," they said in the joint
statement. (rid)