Saturday, December 31, 2011

"Tax Holiday" Could not stem the Import Phone

The government gives tax exemption or reduction of payments within a certain time (tax holiday) to the telecommunications industry. the policy is actually a step to reduce the volume of imports of mobile phones (mobile phones).

"Tax holiday we give the telecommunications company for mobile phone at the number of imports to Indonesia, but until now no telecommunications companies that invest in Indonesia," said Director General of the Ministry of Industry-Based Manufacturing Panggah Susanto, after a coordination meeting at the Ministry of Economic Affairs, on Monday (22 / 8 / 2011).

The government decided to insert the telecommunications sector became one of the recipients tax holiday to provoke interest in a company engaged in the telecommunications sector to invest in Indonesia. Allocation of tax holiday on the telecommunications sector was given without seeing the track record of foreign telecom companies that had dominated the domestic companies. However, he asserts, it should be given tax holiday status regardless of whether foreign or local companies.

Confirmed Separately, Director General of Industry Leading High Technology-Based Industry Ministry Budi Darmadi expressed, the telecommunications industry actually has a gap to be developed through new investment. Because, so far from the telecommunications industry components, sub components, until the assembly bring most of their raw materials from abroad. For example, an optical fiber network system, poles, and wires down. Shopping for the telecommunications industry working at least need to spend about Rp 150 trillion. Most of the imports.

Therefore, the tax holiday is expected to divert it into an investment share of imports in the domestic market. Although reluctant to mention the company name, Budi said, at least some companies from Western Europe, South Korea, China, Japan, and North America have expressed interest in investing in the construction industry of telecommunications components.

"As U.S. companies that he would invest the manufacture of radar and CCB circuit box," he said.

For direct investment company that manufactures mobile phones, he admitted, not knowing for sure. Only, he says, there have been six known brand companies are already marketing their products in Indonesia even without the tax holiday incentive.

In addition to cell phones and components, the company that manufactures the netbook can enjoy the tax holiday facility for the telecommunications industry categories, including equipment that can be used for the internet. "The bottom line telecommunications equipment to the Internet, if netbooks dependent, may or may not create the internet," he explained.

Based on import data released by the Ministry of Trade, electronics products from China dominate the market for electronic imports from January to May 2011. The value of imports of electronic goods from the country reached 559.8 million U.S. dollars or 35.9 percent of the total imports in that period, which reached 1.55 billion U.S. dollars. Total imports January-May 2011 rose 11.95 percent from the same period the previous year with a value of 1.39 billion U.S. dollars.

In proportion, China occupied the position of Indonesia's largest supplier of imports followed by 353.3 million Hong Kong dollars, Singapore 334.8 million U.S. dollars, India 113 million U.S. dollars, and South Korea 72.8 million U.S. dollars. Another contributor to electronic products imported from Malaysia valued at U.S. $ 66.6 million, Thailand 44.4 million U.S. dollars, Japan 2.6 million U.S. dollars, 2.6 million U.S. dollars, and Russia 1.6 million U.S. dollars.

Chairman of the Electronics Association (Gabel) Subroto Oentaryo Ali explained, it covers all categories of imports of electronics products. Such as home electronics to information technology (IT). "Increase not only electronics, but also mobile phones," he said.

Of the portion of the total value of imports, about 49 percent of the portion of a cell phone. Followed by sub-notebooks and netbooks by 27 percent and 24 percent contributed washing machines, refrigerators, energy-efficient lighting, and hundreds of varieties of other products.

The high share of imports of mobile phones and netbooks, he said, because the absence of domestic plants that produce it. "Mobile has been no domestic production, imports all. Notebooks almost nothing, only the electronic factories there," he explained. However, a global branded companies in the country which has branches in Indonesia also exports its products to another country. Most of the information technology-based products such as printers.



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