Indonesian Ministry of Finance has announced the lifting of import duties on some feedstock including hot rolled steel for the purpose of helping the domestic manufacturing industry to cope with rising fuel costs and commodity prices as well as encouraging the real sector and improving the competitiveness of certain industries.
According to a release by Indonesia's Ministry of Finance, taxes will be waived for 11 industries including electronics, automotive, shipbuilding, heavy equipment, steel and power generation.
The fiscal incentives in the form of government-borne import duties are based on Regulations of the Finance Minister No. 134/PMK.011/2008 to No. 148/PMK.011/2008 dated October 7, 2008.
The incentives, which are valid up to December 31 this year, have only been given for the import of goods which have not yet been produced at home, goods which have been produced at home but have not yet met the required specifications or goods which have been produced at home but the quantities of which fall short of domestic needs.
The granting of the incentives is the manifestation of the mandate of Law No.16/2008 in the revised 2008 state budget.
The Indonesian import duty on hot rolled coil has stood at between 7.5-12.5 percent.