JAKARTA (TheInsiderStories) — Good morning! Following businessmen critics over investment negative lists in 16th economic policy package, Coordinating Ministry for Economic Affairs is now reviewing the lists along with Indonesia Chamber of Commerce and Young Entrepreneurs Association which earlier weren’t invited to the policy discussion.
The review aims to get comprehensive formulation for the recent economic condition. But government not yet assured if there will be any revision over the lists.
Furthermore, the government continues to strive to create policies that facilitate and stimulate export activities. One of them is to cut down the export licensing process and rebranding of Bonded Zones, which are driven by the Directorate General of Customs and Excise. This was done in order to support a reduction in the current account deficit.
Through the Minister of Finance Rules Number 131/PMK.04/2018 concerning Bonded Zones and the Director General of Customs and Excise Regulation Number PER-19/BC/2018 concerning Procedures for Bonded Zone, Customs and Excise provides facilities in the form of trimming licensing processes.
The licensing process is cut from 15 working days at the customs office and 10 working days at the Customs head office to three working days at the customs office and one hour at the regional office. The number of electronic transactional licenses was also cut down from 45 licenses to 3 licenses.
While, only a month away to the end of the year, Indonesia’s customs and excise earning is Rp34 trillion (US$2.31 billion) low on target. Recently, the revenue collected is Rp160.85 trillion.
Even so, seeing the trend, directorate general claimed able in achieving target, as import tariff has attained 97 percent target and export tariff earning is twice beyond target.
Then, to boost excise revenue and support the environment, government will impose excise for plastic bag. The policy that will be stipulated as government regulation, is now being discussed between related ministries. Afterwards, it will be talked over with House of Representatives.
Furthermore, Bank of Indonesia (BI) projected 2019 as a challenging year amid global economic slowdown, Federal Reserve’s interest rate hike, and risk over global financial market uncertainty.
The Bank predicted Indonesia economy in 2019 will grow in a range of 5-5.4 percent, supported by strong domestic demand in consumption and investment, also improving export performance. In the next five years, BI estimated Indonesia economic growth around 5.5-6.1 percent.
Furthermore, the central bank will continue boosting efficient market mechanisms for Rupiah exchange rate stabilization. It will also maintain foreign exchange reserves and strengthen cooperation with regional central banks.
Go to the financial market. In the last couple of weeks, Rupiah slightly regained its power and returned to around 14,500 againts US Dollar. While, two days after the newly-launched stocks market transaction settlement period from T+3 to T+2, daily average of trade volume stagnant at 10.28 trillion shares valued Rp8.31 trillion.
The Jakarta Composite Index closed declining 0.15 percent to 6,013.58 while foreign recorded 155.89 billion Rupiah net buy.
May you have a profitable day!
US$1: Rp 14,700
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com