Indonesia: Import duty adjustments for raw materials, consumption and capital goods
On 13 April 2011, the government of Indonesia announced an adjustment of the import duty on a wide range of raw materials, consumption and capital goods. The measure included trade-enhancing as well as discriminatory elements.
The government reduced import tariffs to zero for raw materials and capital goods such as basic metals, chemicals, transportation equipment and textile machines.
Also, the government raised import tariffs on fish and sugar confectionary to 10 percent (up from 5 percent).
While this measure is trade-enhancing for its removal of import tariffs, the intention follows discriminatory motives. In the clarification to the above regulation, the Ministry of Finance explains:
"The purpose of reducing the import duty of the material goods and capital goods is that the downstream industry using the material goods and capital goods may produce competitive products. Meanwhile, the purpose of raising the import duty of consumption product is to protect the downstream industry from imported goods."
For the identification of affected trading partners, only the countries enjoying trade with Indonesia on the affected tariff lines have been selected.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?|
|Is there any evidence that alternatives to the proposed measure were considered?|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?|
|Was such evidence identified?|
|Is such evidence publicly available?|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?|
|Did the government state its intention to review the measure within one year of implementation?|
Date of inception: 18 Apr 2011
GTA Evaluation: Amber
Ministry of Finance. (2011). Regulation 80 PMK.011. Available at http://www.fiskal.depkeu.go.id/2010/adoku/2011/2011PMK80011.pdf
Ministry of Finance. (2011). Clarifications to the above regulation. Available at http://www.depkeu.go.id/Eng/Data/Siaran_Pers/PR_MFN_260411.pdf