In mid-November 2014,
Industry Minister Saleh Husin, Finance Minister Bambang Brodjonegoro, and
Coordinating Minister for Maritime Affairs Indroyono Susilo held a coordination
meeting on the shipbuilding industry. There are four points agreed to be
further discussed, among other, 0% import duties for certain imported
components, simplification of procedures of import duties borne by the
government (BMDTP), value-added tax (VAT) 0% option which will be defined in
draft government regulation, and amendment of Government Regulation No. 52/2011
In order to cultivate the national shipbuilding industry,
the Ministry of Industry is planning to provide fiscal incentives for the shipbuilding
industry is planning to provide fiscal incentives for the shipbuilding industry.
Thus, the Ministry of Industry is targeting national shipbuilding utilization
to reach 50% in 2015. Hasbi Assiddiq Syamsuddin, Director of Maritime,
Aerospace and Defense Equipment Industry of the Ministry of industry, in
Jakarta (Friday, December 5), considered that fiscal and non-fiscal incentives
triggered growth of the national
shipbuilding industry which production utilities is about 35%.
He said that the government is undertaking harmonization
of some polices, ranging from 0% VAT relief for imported components, income
tax, and BMDTP incentive. First, 0% VAT relief for imports of ship components
and income tax. Second, BMDPT incentives. Third, imposition of import duty for
imports of new and used ships. Fourth, draft government regulation non-taxable
facilities. Additionally, Indonesia will gradually begin to restrict imports of
used vessels so that the local industry could grow.
He is optimistic that the plan of providing fiscal
incentives and non-fiscal incentives from the government for the national
shipbuilding industry. He added that the industry will absorb more workforce in
the shipyard industry. In addition to fiscal incentives, he explained that the
Ministry of Industry also prepares non-fiscal incentives, such as land rental
rates, especially for the old shipyard which operates on land owned by
state-owned enterprises and the navy.
He said that the policy is still under calculation so
that it could be well targeted. It is said that relaxation in the form of
fiscal and non-fiscal stimulus will cause faster growth of the industry in line
with the acceleration of government’s sea toll project. According to him, the
shipyard industry has been forced to build ships at higher prices compared to
foreign products because cost of imported components is subject to import
duties so that are unable to compete.
Meanwhile, industry players doubt the effectiveness of
underwriting of import duties by the government for a three-year quota for the
shipbuilding industry. Chairman of the Indonesian Shipbuilding and Offshore
Industries Association (iperindo), Eddy Kurniawan Logam, considered that the
BMDTP incentive option is difficult to be implemented. Moreover, if the
government set BMDTP to be applicable for import plan to meet the needs for
three years.
The difference between the process of making a new ship
and motor vehicle refers to a very specific design. A ship was made highly
adjusted to the specifications provided by costumers. Therefore, it is
difficult to predict the brand and type of components to be used for three
years. BMDTP is one option of fiscal incentives that will be given by the
government to the shipbuilding industry. Fiscal and non fiscal relaxation is
entirely contained in the specific proposals formulated by the taskforce. However,
Eddy still gives appreciation to the government on the incentive plan. He hopes
that the government can implement policies that have a real impact and easy to
implement so that the shipbuilding industry can rise. (E)
Business News - December 10, 2015
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