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Indonesia Raises Import Duties on Consumer Goods

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  • Indonesia Raises Import Duties on Consumer Goods

    http://thejakartaglobe.beritasatu.co...protectionist/

    read it and weep. Has me asking, how many idiots run this government?
    [COLOR=#333333][FONT=Verdana]Some love to milk Apostate.[/FONT][/COLOR]

  • #2
    .. soon it will be cheaper to fly to Singapore to get your English breakfast with nice pork sausages, Danish bacon, and Swiss cheese, than preparing it yourself in your kost in Jakarta... really, really sad

    And fastpitch - I am not quite sure, but if you tell me how many people there are in the government - I am quite sure I can give you a quite exact answer..

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    • #3
      no worries i think the rupiah will drop another 25% at least so that will negate the tax rise , ha ha ha

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      • #4
        Directly from the article: "[COLOR=#000000][FONT=Helvetica]Suahasil Nazara, head of the finance ministry’s fiscal policy office told Reuters that the increased tariffs were “meant to push local industry”."

        It will be interesting to see if this is really why they increased the duty. For example the government encouraging alcohol production to compete with international products such as creating a decent Indonesian rum or whiskey or granting licences to new craft brewery's. Only time will tell. If it is not to encourage local production then I can only see it as a huge, miscalculated mistake which will lead to more smuggling and more illegal alcohol production and fake products.

        It is a big gamble by the government to do this and over the next few months/years we will certainly see the negative or hopefully positive effect.[/FONT][/COLOR]

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        • #5
          This cartoonishly large tariff increase looks reminiscent of the Smoot-Hawley Tariff from the 1930s. How'd that one work out?
          This space is available for rent.

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          • #6
            Wasn't it just about a month ago the MoF eliminated the luxury tax on imported products to encourage more people to buy the goods here rather than fly to Singapore? Talk about erratic and disjointed policy making! What a joke this all is.....

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            • #7
              I'm sure the smugglers will love this. I'm sure it will increase profits greatly.
              Sasa Bule is having a bayi!

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              • #8
                Could it possibly be that this provision is subtitled the Smuggler's Welfare regulation?

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                • #9
                  Taking out alcohol which is an obvious joke, since there is no industry for that product, the law makers might really think they are protecting local industry. But the reality is that the rich will continue to buy what they want and the poor and middle classes will be stuck with inferior goods from all the manufacturers that can't or won't make a competitive product.

                  What this really says is we know our industry can't compete so we will make the good products too expensive for the masses.

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                  • #10
                    Originally posted by Kimdub View Post
                    Taking out alcohol which is an obvious joke, since there is no industry for that product, the law makers might really think they are protecting local industry. But the reality is that the rich will continue to buy what they want and the poor and middle classes will be stuck with inferior goods from all the manufacturers that can't or won't make a competitive product.

                    What this really says is we know our industry can't compete so we will make the good products too expensive for the masses.
                    I beg to differ. There is a thriving Indonesian distillation industry. The only drawbacks affecting sales are the side effects -- blindness and death.

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                    • #11
                      scrap luxury tax (no longer applied on luxury goods)... increase import duty (applied on all goods)... so everyone looses, not just the middle/upper classes! well done indonesia

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                      • #12
                        meat duty from 5% to 30%....ouch...
                        On verra!

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                        • #13
                          Originally posted by waarmstrong View Post
                          I beg to differ. There is a thriving Indonesian distillation industry. The only drawbacks affecting sales are the side effects -- blindness and death.
                          Is importing ASEAN-produced alcoholic beverages duty-free under ASEAN Free Trade Area (AFTA)? Supposedly, all ASEAN products have 0% tariff since 2010?

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                          • #14
                            I would not dare to answer that, but I presume the AFTA agreement was went for free movement/no import duty of all products within the member countries.. (like withink the European community) But maybe not

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