JAKARTA (TheInsiderStories) – Indonesian government is working hard to boost export performance to overcome trade balance, which in 2018 recorded a deficit of US$8.57 billion. The country also chopped export procedure to rise the foreign exchange revenues.
So far, the government has formulated a variety of policies like determining various sectors or leading export commodities, expanding market access and tariff preferences, providing fiscal incentives and simplify export procedures.
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso said on Monday (02/04), one policy to simplify this export procedure is to reduce commodities which must be included in the Surveyor Report (SR). The new policy its expecting could be implemented soon.
As an initial stage, he stated, the government had agreed on four export commodities to be exempted from SR obligations namely crude palm oil and derivatives, gas exported through pipes, semi-finished rattan and timber logs from plants industry.
“In addition to these four commodities, other commodities will soon to follow, especially the commodity groups whose export value is among the top 10,” he noted.
Right now, said Moegiarso, government aimed to changes some rules under Minister of Trade, which regulates SR obligations on the products. Furthermore, he stated, the existence of this policy could at least reduce costs and time so as to increase the competitiveness of Indonesian exports.
Previously, Coordinating Minister for the Economy Darmin Nasution, the government has chopped export procedure for natural resources to boost foreign exchange (forex) revenues and to anticipate capital outflow from the country. The policy also aimed to maintain the stability of the Rupiah against the turmoil of global economic condition.
Government also regulated the forex revenues to be placed in a special account in local bank. The forex proceed, he said, originating from the natural resources sector, especially mining, plantation, forestry and fisheries.
The government also imposes administrative sanctions for exporters who do not want to place the forex proceeds in a special bank account within the country by the end of the third month after the registration of export customs notification.
While, Bank Indonesia (BI) Governor Perry Warjiyo ensured that the central bank had prepared regulations and special savings account techniques to support the government policies. Especially, he said, regarding the provision of tax incentives that are more taken abroad and converted to Rupiah, such as taxes and deposit rate.
Furthermore, Minister of Trade Enggartiasto Lukita admitted has plan to simplify the procedures export at his ministry. Then, the Ministry of Finance’ directorate general of customs and excises Heru Pambudi supported the plans by ease the procedural of customs services and improvement of business processes to encourage exports.
by Linda Sialen, Email: email@example.com