Economy & Industry

Import Duty Up

JAKARTA— Ministry of Finance of RI launched the Finance Minister Regulation (PMK) No. 132 / PMK.010 / 2015 on the Classification System of Goods and Imposition of Duty on Imported Goods. The regulation implies that duties of imported consumer and non-consumer goods entering Indonesia should increase. This regulation began in effect on Thursday, 23 July 2015.
The Minister of said that the purpose in raising import duties is to protect the domestic industry. Average tariff of import duties in Indonesia was the cheapest in the world. With the enactment of this policy, tariffs imports of consumer goods on average in Indonesia became 8.83 percent. And this is still lower than other countries.
Impact on Automotive Sector
With the enactment of this policy, tariffs of CBU car increases from 40 percent to 50 percent.
GAIKINDO Secretary General Mr Noegardjito said that the increase in import duties will not have significant impact on the national automotive industry. Nationwide car sales will not suffer. CBU cars are consumed only by rich persons with ceiling-high prices.
 Chairman I of GAIKINDO Mr Jongkie D Sugiarto said Indonesia is bound to free trade agreements with several countries such as ASEAN, Japan, Korea, and India. The agreement is already set taxation. Cars imported from those countries are not subject to import duties. Thus, imported cars from ASEAN member countries, Japan, Korea, and India is not affected by the newly-launched regulation.