Accelerate Domestic Jewelry Industry, Government Cuts Raw Materials Import Duty Tariff
By : Ridwan And Aldi Firhand. A | Monday, March 19 2018 - 21:37 IWST
INDUSTRY.co.id - Jakarta, National jewelry industry is believed to be growing and competitive. This is in line with government policy to cut import tariff (BM) on raw materials or components needed by the sector.
"The Ministry of Industry has proposed a decrease in the imposition of customs tariffs for rough diamonds and diamonds from five percent to zero percent," said Head of the Agency for Research and Industrial Development (BPPI) Ngakan Timur Antara in Jakarta, over the weekend.
The proposal was finally accommodated through the issuance of Regulation of the Minister of Finance (PMK) No. 17 of 2018 on the Second Amendment to PMK No. 6 of 2018 concerning the Stipulation of Classification System Shipping and Imposition of Import Duty on Imported Goods, as of March 1, 2018.
According to Ngakan, the import duty exemption policy shows the support and care of the government in an effort to protect national industry, especially jewelry craftsmen.
"Given the jewelry so Indonesia is interested in domestic and foreign consumers because of the design and quality," he explained.
Furthermore, the reduction of import duty rates will also be able to increase state revenue because the added value of diamond in the form of jewelry is much greater than the value of diamond import duty.
"In addition, it can improve the compliance of diamond imports so that it will improve the transparency of customs administration and taxation," Ngakan said.
Ministry of Industry noted, the jewelry industry has a positive impact on the national economy, both through employment and export value.
Currently, there are 36,636 units of jewelry industry in Indonesia with total employment of more than 333 thousand people.
Throughout 2011-2016, national jewelry export performance showed an increasing trend of 16.85 percent, with export value in 2011 amounting to USD2.59 billion to USD5.34 billion in 2016.
"One of Indonesia's largest jewelry exporters comes from East Java," he said.
News Comment