Tax free for telecom parts

JAKARTA (JP): Firms operating in the telecommunications sector will continue to be exempt from paying import duties on raw materials, components and spare parts, the Ministry of Finance announced on Friday.

Ministry spokesman Hadiyanto said in a statement that the exemption had been extended to help support development of the country's telecommunication sector. Almost all raw materials and component parts used by firms operating in the sector have to be imported.

Hadiyanto said that the exemption would be effective for the period of one year beginning on Sept. 2, 1998.

Companies must apply to the director general of customs and excise if they want to be granted the exemption.

The exemption applies to components required to build digital telephone exchanges, automotive phone networks and telecommunications terminals.

In all, 438 components used in digital telephone exchanges are covered by the exemption along with 94 components for telecommunications terminals and 471 components required in automotive phone networks. (gis)