8 Feb 2017
INDONESIA: Export-Oriented SMEs Now Exempt from Import Duty
Export-oriented SMEs are now exempt from import duty payments on raw materials and other inputs. Under the terms of the newly-adopted Import Tax Waiver for Materials for Export Oriented Goods (KITE), qualifying companies need to export at least 75% of their output.
The move is expected to slash the production costs of all such businesses by 25% while, ultimately, boosting exports. Qualifying SMEs are also eligible to apply for low-interest loans from Indonesia Eximbank, the country’s export financing agency.