Inception date: 01 Apr 2012 | Removal date: open ended

Tax-based export incentive

On 1 April 2012, the Indonesian Government installed a new import duty refund scheme.
The initial scheme was introduced in 2008 after the global economic downturn that widely affected the domestic industries

Under the new scheme, registered firms in the country (existence of a registration number (NIPER)) can ask for import duty refund on raw materials if the processing and manufacturing of the products is done in the country. This new scheme aims to promote local production and introduces disadvantages for importers of finished products. Furthermore, the duty suspension also favors Indonesian exporters, hence it implies trade distorting effects with respect to the Indonesian market as well as all of its export markets.

The measure is limited to 13 industrial sectors including stationery, textiles, plastic, telecommunications and fiber optics. It will be expanded to 16 sectors in 2013 and is estimated to amount for Rp 405 billion. (USD 44 million) in 2012 and Rp 706 (USD 72 million) in 2013.

The list of sectors for 2013:

fertilizer, plastic, ballpoint, carpet, heavy equipment, turbine, factory machineries, automotive parts and train, as well as shipyard, non-strategic defense equipment, electronics, optical fiber wire, communication tools, smart card and special ink

AFFECTED SECTORS

 
272 282 346 347 351 363 364 369 389 392 423 431 432 433 435 439 442 444 445 446 448 449 451 452 461 462 463 464 465 469 471 472 473 474 475 476 479 482 491 492 493 495
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AFFECTED PRODUCTS

 
310100 310210 310221 310230 310420 310430 310520 310530 310551 310559 310590 321519 321590 390110 390120 390190 390210 390290 390319 390330 390390 390410 390422 390430 390512 390610 390690 390720 390730 390750 390760 390799 390810 390890 390910 390920 390930 390940 390950 391390 391510 391590 391690 391722 391729 391732 391910 391990 392010 392020 392049 392051 392059 392061 392062 392063 392069 392092 392099 392111 392112 392113 392119 392190 392310 392321 392329 392330 392340 392350 392390 392410 392490 392530 392590 392610 392620 392630 392640 392690 570232 570242 570320 570330 570500 840212 840219 840290 840310 840390 840420 840690 840732 840733 840734 840810 840820 840890 840991 840999 841112 841122 841182 841191 841199 841221 841280 841290 841311 841330 841370 841381 841391 841430 841451 841459 841460 841480 841490 841510 841520 841590 841810 841821 841829 841850 841869 841899 841932 841939 841950 841989 841990 842123 842129 842131 842139 842199 842230 842240 842290 842381 842390 842619 842620 842699 842890 842911 842940 842951 842952 842959 843031 843049 843120 843131 843139 843141 843143 843149 843830 843880 844319 844331 844332 844339 844391 844399 844820 844839 844849 845019 845090 846190 846299 846693 846694 847050 847090 847130 847141 847149 847160 847170 847180 847190 847329 847330 847340 847480 847490 847621 847690 847751 847790 847810 847982 847989 847990 848030 848041 848049 848071 848079 848110 848120 848130 848180 848190 848210 848220 848230 848280 848291 848299 848310 848330 848340 848350 848360 848390 848410 848420 848490 850110 850131 850161 850211 850212 850213 850231 850239 850300 850410 850422 850423 850431 850432 850434 850440 850450 850490 850511 850519 850520 850590 850610 850650 850680 850690 850710 850720 850730 850750 850760 850780 850790 850940 850980 851010 851110 851120 851130 851140 851150 851190 851220 851230 851240 851290 851310 851590 851629 851640 851660 851690 851712 851718 851761 851762 851769 851770 851810 851821 851822 851829 851830 851840 851850 851890 852110 852190 852210 852290 852321 852329 852349 852352 852359 852380 852550 852560 852580 852610 852691 852692 852713 852719 852721 852729 852791 852799 852851 852859 852871 852872 852873 852910 852990 853110 853120 853180 853190 853210 853221 853222 853223 853224 853225 853229 853230 853290 853310 853321 853329 853339 853340 853390 853400 853529 853530 853590 853620 853630 853641 853649 853650 853669 853690 853710 853720 853810 853890 853910 853921 853922 853931 853932 853939 853941 853990 854011 854020 854091 854110 854121 854129 854140 854150 854160 854190 854231 854232 854233 854239 854290 854411 854419 854420 854430 854442 854449 854460 854470 854590 854720 854890 860799 860900 870810 870829 870830 870840 870850 870870 870880 870891 870893 870894 870895 870899 890110 890120 890190 890400 890510 890520 890590 960810 960820
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