JAKARTA-Government finally objectified the incentive for low cost and green car (LCGC) development which will apply from July 2012.
The decision is contained in the Finance Minister Regulation No.76/PMK.011/2012 dated May 21, 2012. The regulation had been enacted on May 22, 2012 and valid for 30 days after being enacted.
It is an amendment on Regulation No.176/PMK.011/2009 on Customs Exemption on Imports of Machinery and Materials and Goods for Industry Construction or Development for investments.
Based on information from Center for Revenue Ministry Policy of fiscal policy, Ministry of Finance, the changes in regulation was to support increased investment and the national motor vehicle industry especially LCGC in form of customs exemption.
Customs exemption will be granted for the construction and development of motor vehicle assembly subindustry.
Customs exemption is given if the machinery, goods and materials to support the LCGC program have not been produced domestically, has been produced in the country but does not meet the required specifications, or has been produced in the country but the numbers are not sufficient for the industry.
"Facilities provision for the assembly industry is expected to stimulate motor vehicle parts industry," as cited on the information in the official website of the Ministry of Finance on Tuesday, June 12, 2012.
The Regulation is also to provide legal certainty for companies that have obtained the import duty exemption facility but have yet to realize the whole goods and materials importations within four years.
As for companies affected by the provisions of the import trade system in form of import quotas, import can be extended for a year. The regulation also serves as the oversight of the potential misuse of customs exemption facility. (T07/msw)