Spokesperson For The Ministry Of Industry For Clarification Of Chinese Products Will Be Taxed 200 Percent

JAKARTA - The Ministry of Industry (Kemenperin) gave an explanation of the results of an internal limited meeting (Ratas) chaired by President Joko Widodo (Jokowi) on Tuesday, July 2 yesterday. It was stated that the meeting did not talk about the plan to impose import duties of up to 200 percent of goods from China.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said the meeting only discussed Indonesia's health ecosystem, including the health industry and no other issues. This was conveyed to straighten out the news quoting the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita regarding the 200 percent import duty.

"Regarding this, we convey and clarify that the Minister of Industry (Agus Gumiwang) only answered questions about the contents of the tax relaxation meeting for the health industry and did not answer questions regarding the plan to import duties of 200 percent of imported products," said Febri in his official statement, quoted Wednesday, July 3.

Therefore, Febri assessed that the statement made by the Minister of Industry Agus did not refer to the explanation of the imposition of 200 percent import duty for imported Chinese products.

"In other words, there is no statement from the Minister of Industry that aims to answer or mention the imposition of import duties of 200 percent of imported products," he said.

Meanwhile, for the Minister of Industry's answer regarding the reporting for the next two weeks by ministries and institutions, Febri views this as Jokowi's direction to follow up on the results of internal meetings on tax relaxation in the health industry and not about plans to impose 200 percent import duty issues.

Febri also explained the results of the Ratas. President Jokowi gave ministers two weeks to provide a complete report, including the possibility of using the prohibition and restriction instruments (lantas). The team will be led by the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Panjaitan.

Then, Jokowi's directive is that public services in the health sector can be cheaper with good quality after implementing pro-to-national health industries policies.

Jokowi also gave directions so that all regulations could lead to sector independence and the health industry, so as to attract investment in the sector. In turn, the procurement of medicines and medical devices (alkes) can be fulfilled by the domestic industry.

The improvement of the pharmaceutical and medical equipment industry ecosystem is very necessary so that the needs of the Indonesian people to receive quality health services can be realized.

Sufficient and affordable health facilities are needed, this is in line with efforts to increase the productivity and competitiveness of the two industrial sectors in the country. However, the pharmaceutical industry still has a large dependence on imported raw materials.

"In the meeting, the Minister of Industry submitted several proposed policies that need to be taken to increase investment in the pharmaceutical industry sector," he said.

The first suggestion is that imports of medicinal raw materials should not be subject to technical approval rules (pertek). This is to make it easier for the domestic pharmaceutical industry to obtain raw materials. Pertek should be imposed on goods as imported medicines.

Second, proposing a Government Borne Import Duty (BMDTP) scheme for medicinal raw materials that cannot yet be produced in Indonesia and the elimination of VAT for local medicinal raw materials.

The latest proposal is that the Ministry of Industry asks the pharmaceutical industry and medical equipment to receive tax allowance facilities for its development. This is because currently there is no industry from the two sectors that have obtained these facilities.