The Finance Ministry issued Ministerial Decree No. 88/PMK/011/2010 on April 21, 2010, which stipulates lower import tariff rates for incompletely knocked-down auto and components. With the revision, the import tariff ranges 0-7.5% compared to 5-15% previously. The Indonesian Automotive Association states the new regulation will strengthen Indonesia’s auto and components industry’s competitiveness and increase the local content in auto manufacturing.
Overall, the new regulation is positive in further supporting Indonesia’s auto and components industry. The local content of Indonesia’s 4W and 2W stands at 80%-90% already, though. We think the impact of the new regulation will not be too material.
Tidak ada komentar:
Posting Komentar