Photo: Industry Minister Agus Gumiwang Kartasasmita
In anticipating further disruption in raw material supply for the industry, government is set to delay import duties and corporate income tax payments for six months, top rank executives have said.
Manufacturing industries have complained of raw materials supply disruption that has crippled factories across Indonesia. Twenty to 50 percent of raw materials for the country’s industries are sourced from China, Indonesia’s biggest trade partner.
Industry Minister Agus Gumiwang Kartasasmita said the stimulus for import duties aimed to fulfil industry needs of raw materials.
“This is related to the import duty for raw materials. In principle, we have already agreed on how much it will cost,” Agus said, declining to say how much the stimulus would cost. “We will decide the new economic package in the next few days.”
Echoing the view, Coordinating Economic Minister Airlangga Hartarto said the fiscal stimulus aimed to stimulate manufacturing activity, adding that the government was finalizing the supporting regulations to enact such policy.
“We hope to implement the stimulus package in April after preparing the legal background,” Airlangga told reporters in Jakarta on Wednesday (March 11, 2020).
As reported earlier, following the coronavirus outbreak, the trade volume between Indonesia and China continue to drop, threatening the supply of raw material to Indonesia’s industry.
But industry players are waiting for a further implementation manual of this government policy.