Indonesia: Import duty exemptions of imported goods and materials for the production of goods/services
Description
On 11 March 2010, the Indonesian government introduced fiscal incentives in the form of import duty exemptions to industries of certain sectors. The exemptions are provided for industries using imported goods and materials to produce goods and/or services under the following criteria:
- providing goods and/or services for public interests, being consumed by general public, and/or protecting consumers,
- improving competitiveness,
- creating more job opportunities,
- raising state revenues,
and under the following qualifications:
- they are not produced locally,
- they are produced locally but below the required specifications,
- they are produced locally but in insufficient amount which mean businesses need to import goods.
The new policies are stated in Regulation of the Minister of Finance No.42/PMK.011/2010 up to No. 55/PMK.011/20 and are in effect from the date of stipulation until 31 December 2010.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| 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? | Yes |
Date Discovered:
Implemented: Yes
Date of inception: 11 Mar 2010
GTA Evaluation: Amber
Source:
Indonesian Ministry of Finance, 11 March 2010 (http://www.depkeu.go.id/Eng/Read/?type=ixPers&id=15005&thn=2010&name=PR_...)
Government Response:
- 1280 reads
