JAKARTA (Yosefardi) – President Joko Widodo has issued Presidential Instruction Number 12 of 2015 on the Free Trade Facilities Policy in the country.
To the Minister of Finance, the President instructed to compose rules on several things: first, Suspension of import duties on imports of raw materials, components, and additional material that is used to make goods in business activities in a certain place or area (the Inland Free Trade Arrangement).
From information reported by the Setkab website on Wednesday (30/12), the second instruction is to omit the Value Added Tax (VAT) for delivery within the country on raw materials, components and additional goods originating from domestic production and between regions or a place or a particular industry get free trade facilities in the country.
Lastly is the rule regarding the imposition 0% (zero percent) of import duty on the import of goods referred to point 1, which has been used to produce goods made in the region or place or a particular industry that get the facility of free trade in the country, which are sold to domestic markets with the imposition of 0% (zero percent) import duty for manufactured goods that have local content of at least 40%.
The rules are expected to support the realization and supervision of the implementation of regulatory this policy in the country, for the industrial business activities in the area or a specific place which use raw materials, components and additional goods both from abroad and local.