Indonesian Political, Business & Finance News

Two Pulp Companies in South Sumatra Receive KITE Exemption Facility from Customs

| | Source: REPUBLIKA Translated from Indonesian | Trade
Two Pulp Companies in South Sumatra Receive KITE Exemption Facility from Customs
Image: REPUBLIKA

The East Sumatra Regional Customs Office (Kanwil Bea Cukai Sumbagtim) has granted the Import Ease for Export Purposes (KITE) Exemption facility to two pulp companies in South Sumatra, namely PT Lontar Papyrus Pulp & Paper Industry and PT OKI Pulp & Paper Mills. The facility was provided on Friday (10/4/2026) as part of efforts to promote export-oriented industries. Both companies are key players in the pulp and tissue processing sector in the Sumatra region. Their presence is considered vital in strengthening the national industrial structure and driving regional economic growth through increased investment and exports. The Head of the Customs and Excise Facilities Division of the East Sumatra Regional Customs Office, Yanti Sarmuhidayanti, stated that the granting of the KITE Exemption facility represents tangible government support in enhancing the competitiveness of the national industry. “This facility enables companies to obtain imported raw materials without being subject to import duties and taxes, as long as the production output is intended for export,” she said. The policy is designed to lower production costs and improve operational efficiency for companies. Thus, Indonesian products are expected to compete more strongly in the global market. She also emphasised that the role of Customs is not only as a supervisor of goods traffic but also as a trade facilitator and industrial assistance for the business world. Yanti explained that the benefits of the KITE facility are not only felt by the companies but also have a broad impact on society. “This industrial activity can create jobs, increase community income, and encourage the growth of supporting sectors such as logistics, transportation, and SMEs,” she said. With the granting of this facility, Customs hopes that business actors can enhance export performance while providing optimal contributions to the national economy. The KITE Exemption is also expected to serve as a bridge between industrial growth and sustainable improvements in public welfare.

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