IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 09 Jun 2009 | Removal date: open ended
Still in force

Financial grant

The Industry Ministry has agreed to give Rp 50 billion (USD 5 million) to state owned sugar makers in a bid to revitalize the sugar industry and to attain self-sufficiency for all domestic demand, both for households and for industrial use, by 2014.
The fund will be distributed in the form of 10 percent subsidy for every purchase of new machinery by nine state sugar companies (including PT Perkebunan Negara and subsidiaries, PT Rajawali Nusantara Indonesia and subsidiaries, and PT Madu Baru - a joint venture between the Yogyakarta Sultanate and the government).
According to Director General for Metal, Machinery, Textiles and Miscellaneous, Ansari Bukhari, the subsidy does come with a condition being that machines purchased by the companies must be entirely assembled in Indonesia and with a minimum 40 percent local content (the GTA identified affected tariff line for sugar machinery is 8438). Under the scheme, the companies must first buy the new machines and then request reimbursement by the Industry Ministry, with validation by the Agriculture Ministry.
As the main purpose of this program is to reach self-sufficiency in the sugar sector, the affected trading partners are identified as the exporters to Indonesia of more than USD one million in trade value for at least one of the identified tariff lines.

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

219 Oil-cake; flours & meals of oil seeds; vegetable waxes; etc.
2304 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil.
230400 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil.
232 Starches & starch products; sugars & sugar syrups n.e.c.
1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel.
170211 Containing by weight 99 % or more lactose, expressed as anhydrous lactose, calculated on the dry matter
170219 Other
170230 Glucose and glucose syrup, not containing fructose or containing in the dry state less than 20 % by weight of fructose
170290 Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50 % by weight of fructose
235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170113 Cane sugar specified in Subheading Note 2 to this Chapter
170114 Other cane sugar
170199 Other
1703 Molasses resulting from the extraction or refining of sugar.
170390 Other
236 Cocoa, chocolate & sugar confectionery
1704 Sugar confectionery (including white chocolate), not containing cocoa.
170490 Other
352 Pharmaceutical products
2940 Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar ethers, sugar acetals and sugar esters, and their salts, other than products of heading 29.37, 29.38 or 29.39.
294000 Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar ethers, sugar acetals and sugar esters, and their salts, other than products of heading 29.37, 29.38 or 29.39.
445 Machinery for food, beverage & tobacco processing; parts
8438 Machinery, not specified or included elsewhere in this Chapter, for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils.
843810 Bakery machinery and machinery for the manufacture of macaroni, spaghetti or similar products
843820 Machinery for the manufacture of confectionery, cocoa or chocolate
843830 Machinery for sugar manufacture
843850 Machinery for the preparation of meat or poultry
843860 Machinery for the preparation of fruits, nuts or vegetables
843880 Other machinery
843890 Parts

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