INDONESIA AS NEW EMERGING MARKET

Wednesday, April 25, 2007

INDONESIA TO GIVE IMPORT TAX EXEMPTION ON CARS ABOVE 3,000 CC

Indonesia to give import tax exemption on cars above 3,000 CC
April 23, 2007

Jakarta (ANTARA News) - With a view to protecting the automotive industry in Indonesia, the government will only grant an import tax exemption on cars above 3,000 cc.

"Only cars above 3,000 cc will be exempted," the director general for transportation equipment industries, Budi Darmadi, told ANTARA News here on Sunday.

Some automotive producers in the country were worried that the government might open its market to cars of all categories in the framework of the Japan-Indonesia Economic Partnership Agreement (JIEPA) currently still in the making.

Budi said the government would not liberalize its market for cars of all categories because the automotive industry at home had already developed not only to meet domestic needs, but also for exports.

Under the current circumstances, he said the tax exemption would only apply to cars above 3,000 cc while cars below that would continue to enjoy protection.

"We have not produced cars with engines above 3,000 cc and likely will not do it in the near future or will not completely include it in our development plan," he said.

He said the local market share of cars above 3,000 cc was still relatively small as the cars were still considered a luxury and therefore their tax reached more than 75 percent.

He said the government would not offer to liberalize the market for cars below 3,000 cc to Japan because the domestic industry was just developing the type of cars such as Toyota Innova and Fortuner that have engines above 2,000 cc.

"So far the focus of development is on multi-purpose vehicles, sport utility vehicles and small sedans to meet both the domestic and export market," he said.

Budi admitted that the offer to liberalize the market of cars above 3,000 cc was not yet settled because Japan still sought for the liberalization of cars below 3,000 cc.

"Japan wishes for the liberalization of the market for all categories. We will not open the market of cars that we have already made and will make in the future," he said.

In the 3,000 cc segment Japanese cars will compete with cars from Europe and the US such as Mercedes, BMW and Ford. (*)

Copyright © 2007 ANTARA
Technorati Profile

GOVT SCRAPS DUTIES ON IMPORTED RAW MATERIALS OF AUTOMOTIVE SPARE PARTS

Govt scraps duties on imported raw materials of automotive spare parts
April 23, 2007

Jakarta (ANTARA News) - The Finance Ministry has decided to scrap final duties on imported raw materials of automotive spare parts to help encourage the domestic industry.

The provisions were contained in Finance MInister`s Regulation No.34/PMK.011/2007 dated April 3 which will come into force 30 days after its date of issuance, the ministry`s spokesman, Samsuar Said, said on Monday.

He said the privilege would be valid for one year after the regulation became effective.

Any application for the privilege should be addressed to the Directorate General of Customs and Excises. The application must be such data as taxpayer`s code number, business permit issued by the relevant ministry/agency, list of materials, the specifications and prices of goods and a statement of verification issued by a government-sanctioned surveyor, he said.(*)


Copyright © 2007 ANTARA

GOVT TIGHTENS IMPORT OF COPYING MACHINES AND COLOR PRINTERS

Govt tightens import of copying machines and color printers
April 24, 2007

Jakarta (ANTARA News) - The trade ministry has tightened the import of color multi-functional machines such as those for printing, copying and facsimile transmission to prevent falsification of bills and other securities.

Under the trade minister`s decree No 15 2007, the three kinds of machines could only be imported by licensed importers.

To get such license of importers must make an application to the directorate general of foreign trade. The license is valid for two years but can be extended.

Under the decree signed on March 30 2007, the licensed importers must get a permit before importing the products specifying the number, type, specification, ports of destination and origin.

The permit is valid for six months and it may be obtained by submitting an application along with an import plan signed by the company`s executive in charge and a recommendation from the directorate general of transportation and telecommunications and information equipment industry.

The companies are required to report their imports once in every three months or whenever required. The products will be verified at the country of loading by a surveyor appointed by the minister.(*)

Copyright © 2007 ANTARA

ITALY BACKS RI'S DEFENSE INDUSTRY

Italy backs RI`s defense industry
April 23, 2007

Jakarta (ANTARA News) - The Italian government has affirmed its strong commitment to enhancing bilateral relations with the Indonesian government, particularly in the defense field, Italian Defense Minister Arturo Parisi said.

Parisi made the remarks during a meeting with his Indonesian counterpart, Juwono Sudarsono, at the Centro Alti Studi Della Difusa (CASD) in Rome over the weekend, the Indonesian Embassy in Rome said in an e-mailed statement issued on Monday.

The meeting focused on enhancing bilateral ties between the two countries and encouraging concrete cooperation in the defense field, it said.

During the meeting Parisi on behalf of the Italian government also expressed gratitude to the Indonesian government for its participation in the United Nations Interim Force in Lebanon (UNIFIL) and its contribution to the creation of peace in Lebanon in particular and the world in general, it said.

Meanwhile, Juwono expressed the Indonesian government`s wish to build strategic partnership with Italy in the defense field.

The meeting was part of Juwono`s three-day Italian visit which ended on April 21.

During his stay, Juwono also met with officials of the Italian defense industry and visited the Fincantieri shipyard in La Spezia.(*)

Copyright © 2007 ANTARA

INDONESIA TO IMPORT WOOD TO REVIVE COLLAPSED INDUSTRIES

Indonesia to import wood to revive collapsed industries
April 24, 2007

Banjarmasin, S Kalimantan (ANTARA News) - Indonesia plans to import wood to save wood-based industries in various regions in the country that had collapsed because of a shortage of raw materials.

Forestry minister`s expert staff Made Subadya said at a forestry development coordination meeting here on Tuesday, "we are ready to facilitate wood imports to help the industries."

He said several countries that had a stock and had become exporters were among others China, Malaysia and Japan.

The wood from other countries could be used to meet the need for raw material of many wood industries in the country that had collapsed following a shortage of wood stock in forests.

The forestry s ministry had also carried out a smallholders` forest development program covering five million hectares in 2006.

Unfortunately, he said, only 3.5 million hectares had so far been successfully developed, so 1.5 million hectares still had yet to be completed.

The condition of wood-based industries in South Kalimantan was not yet improving and disputes over pay were continuing because of it.(*)

Copyright © 2007 ANTARA