Indonesian Tin Products Are More Expensive Than Malaysia, BKPM Asks For Purbaya Assistance

JAKARTA - Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu highlighted the high cost of tin production in Indonesia.

This condition makes domestic tin derivative products less competitive with similar products from Malaysia.

"In the tin industry, the raw material is in us, the downstream is in us, the smelter is also in us. But once this item enters the stock exchange. Then it is taken by a solder manufacturer in Malaysia and taken by a solder manufacturer in Indonesia," said Todotua in Sarasehan 100 Indonesian Economists at the Tower of Bank Mega, Jakarta, Tuesday, October 28.

Ironically, he said, the price of solder products from Malaysia imported to Indonesia is actually cheaper than the national production solder products.

"But what happened? Seller prices from Malaysia, imports come here, prices are cheaper than domestic production prices," he said.

According to Todotua, this happened because Malaysia had a fiscal strategy that supported their tin industry.

Meanwhile, in Indonesia, mining products are actually subject to layered taxes.

"Our mine is why taxes go into tier one, taxable. Go out, go up to the stock exchange, get taxed. From the stock exchange, go down to the buyer, the solder factory or the chemical table buys, gets taxed. Sell again taxable, "he said.

Todotua said that his party continues to try to reduce the high cost of domestic production. In this context, BKPM is communicating with Finance Minister Purbaya Yudhi Sadive to review the tax policy.

"This is what we are asking for. The Ministry of Investment, now it is progressive, active. We are talking to the Ministry of Finance, some strategic things that we are asking for are how we mitigate so that this becomes competitive," said Todotua.

Therefore, Todotua said, improvements to fiscal strategies must be accompanied by improvements to aspects of licensing, regulation, employment, energy costs, and supply chain ecosystems.

Menurut Todotua, langkah-langkah tersebut menjadi modal penting untuk memperkuat daya tarik investasi di Indonesia.

“Strategi kawasan juga kita dorong, karena di kawasan itu nanti kita akan benar-benar genjot, supaya beberapa macam yang namanya diskresi, deregulasi kita memainkan di situ,” ujarnya.

According to Todotua, these steps are important capital to strengthen investment attraction in Indonesia.

"We also encourage regional strategy, because in that area later we will really boost it, so that some kinds of things that are called discretion, our decregulation plays there," he said.