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Govt to allow more self-managed bonded zones to boost exports, investments
The Finance Ministry on Sept. 19 announced that as many as 119 of the total of 1,372 bonded zones in the country have been granted licenses to self-manage in a bid to attract investments and boost exports.
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The Finance Ministry on Sept. 19 announced that as many as 119 of the total of 1,372 bonded zones in the country have been granted licenses to self-manage in a bid to attract investments and boost exports. (Tempo/-)
T
he government is seeking to build more self-managed bonded zones to realize President Joko “Jokowi” Widodo’s wish to boost exports and investments by providing fiscal incentives and easing bureaucratic processes.
The Finance Ministry on Sept. 19 announced that as many as 119 of the total of 1,372 bonded zones in the country have been granted licenses to self-manage in a bid to attract investments and boost exports.
Deputy Finance Minister Mardiasmo said that in self-managed bonded zones firms could independently run import and export businesses without having to involve customs officers. It is expected to help companies do business, better manage their costs and, in turn, increase their operational income and therefore trade capacity.
“The ultimate goals are to boost exports and investments; this [policy] is a historic breakthrough that links and matches businesspeople to make them more efficient,” Mardiasmo said at a press briefing in Jakarta.
A bonded zone is an economic concept designed to boost exports by allowing manufacturing companies to bring in basic or intermediate materials without paying import duty, value-added tax (VAT) and other indirect taxes.
Self-managed bonded zones would enjoy the same incentives, as well as the ability to independently manage the import and export of goods without having to seek Customs and Excise Office approval.
The government is in the process of identifying all of its rules deemed to impede investors and exports, which would be simplified or annulled in an omnibus law with the aim of attracting more investments and boosting growth.
