More Tax Exemptions for Shipyard Industry



The Indonesian Government will exempt shipyard companies from value and import taxes in a move aimed to create Indonesia's shipbuilding industry more competitive.

Indonesian ministries, however, have yet to complete a list of ship components - which not manufactured in Indonesia - that will be eligible for another import tax exemption.

The Ministry of Maritime Affairs, Fisheries, and Finance indicate that the country needs up to Rp30 trilion (US$2.3b) of new investment in shipyards to enable President Jokowi's plan to create a maritime trade axis across the archipelago by 2019.

Ministry of Industry data suggests that no new investment has entered the sector this year, and the Indonesia Shipbuilding and Offshore Association expects the dry spell to continue until the end of 2015 due to economic downturn.

Sources: Investor Daily, Bisnis Indonesia, the Jakarta Globe.

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