Strategic Step From Ministry of Industry to Lower Import Duties of Indonesian Products

By : Abraham Sihombing And Aldi Firhand. A | Wednesday, January 03 2018 - 14:25 IWST

Minister of Industry Airlangga Hartarto

INDUSTRY.co.id - Jakarta - Although the national logistics system (sislognas) has been implemented in Indonesia, the high tariffs on import duties and tariffs are still an obstacle for many local industrial products to compete in the export market with other emerging products.

Thus expressed by Airlangga Hartarto, Minister of Industry of the Republic of Indonesia, in Jakarta, Wednesday (03/01/2018).

"The condition is caused by a number of economic cooperation agreements between Indonesia and Europe, the United States and Australia has not been agreed upon. If not immediately resolved, then the domestic industry will remain behind, "said Airlangga.

Therefore, according to Airlangga, the Ministry of Industry will coordinate with various ministries or other related institutions to solve the problem.

According to Airlangga, it is done through various strategic steps, namely the creation of a conducive business climate; legal certainty; use of cutting-edge technology for quality improvement and encourage the effectiveness and productivity of industrial activities; and the provision of facilities in the form of fiscal incentives.

Airlangga said that Ministry of Industry is currently negotiating with various parties to carry out these strategic steps, especially to reach a bilateral agreement.

"The reason is that import duties on Indonesian textile products are still charged between 5-20% to America and Europe. Meanwhile, exports of Vietnamese textile products to both regions are now zero percent, "said Airlangga.

As of September 2017, according to data from the Directorate General of Taxes at the Ministry of Finance, tax revenues from the industrial sector grew 16.63% to Rp224.95 trillion compared to the same period in 2016.

Meanwhile, state revenues from taxes have increased in the last 10 years. According to data from the Central Bureau of Statistics (BPS), the state revenue from taxes in 2016 has shot up to Rp145, 53 trillion. In fact, the post in 2007 only recorded Rp44, 68 trillion. (Abraham Sihombing)