Increase industrial economy due to corona outbreak, import tariffs of raw materials will get reduce

Last updated on May 18th, 2021 at 05:39 am

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the government plans to provide a tariff cut of 500 raw material importers. This was done in order to boost the performance of the industry which was hit by the corona virus (Covid-19).

Airlangga said on Tuesday (3/3) night, this was still in the process of coordination with other technical ministries so he did not want to discuss in more detail, waiting for the results of the coordination to be completed.

Furthermore, he said the government was reviewing 500 importers who were judged to be of good reputation who would be provided with facilities to facilitate licenses and cut tariffs on imports.

“It has been evaluated that 500 importers are good. If 500 of them are good importers, yes we have to provide special facilities. The name is good, so it does not violate,” he said.

On the other hand, Airlangga claims the government is also seeking alternative local raw materials to meet and increase domestic production of goods.

According to him, textile raw materials such as rayon, polyster can actually be met by relying on domestic results.

Other efforts have also been made by the Minister of Finance Sri Mulyani Indarwati, bearing in mind that the national industry is still quite dependent on the Chinese industry, so he stated the government would provide incentives in the taxation field to adjust the industry’s condition to global pressure due to the Covid-19 outbreak.

The Director General of Customs and Excise of the Ministry of Finance, Heru Pambudi, also responded that the granting of facilities for importing raw material permits to 500 importers will be automatically validated, thus saving licensing review time.

Airlangga added, “Once he can and is included in the category of good importers, then he can be given direct permission. Hopefully (the list of 500 importers) can (finish) in a matter of days”.