ANNOUNCEMENT 11 Aug 2016

On 11 August 2016, the Indonesian Ministry of Agriculture published regulation 37/Permentan/HK.140/8/2016 on the horticulture materials that are not yet produced in Indonesia.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 1 neutral
  • 1 liberalising

SOURCE

Official Ministry of Agriculture regulation 37/Permentan/HK.140/8/2016 (in Bahasa Indonesia)
http://perundangan.pertanian.go.id/admin/file/Permentan%2037-2016%20Sarana%20Horti%20Yang%20Belum%20Dapat%20Diproduksi%20Di%20Dalam%20Negeri.pdf

Inception date: No inception date

Tax or social insurance relief

According to Article 1 of the regulation, this provision "is intended as a legal basis for obtaining facilities and/or incentives on Horticultural Facilities that can not be produced domestically, with the aim to encourage Business Executors to produce Horticultural Facilities that have not been able to produce them domestically." (own translation)

One of these incentives included tax reliefs (art. 6(2) of the regulation). 

Article 4 further stipulates the list of products which may be covered by these incentives:

  • "A. Quality seeds of superior varieties;
  • B. Quality fertilizer and environmentally friendly;
  • C. Quality growth regulators and environmentally friendly;
  • D. Controlling agents of environmentally friendly plant-disturbing organisms; and
  • E. Tools and machinery that support the development of Horticulture." (own translation)

Given that this regulation shall serve merely as a legal basis for such forms of state aid, this intervention shall not be classified as implemented.

Inception date: No inception date

Import licensing requirement

Another one of these incentives included eased import licensing requirements (art. 6(2) of the regulation). 

Given that this regulation shall serve merely as a legal basis for such forms of state aid, this intervention shall not be classified as implemented.