- pocketberry.com
VIVAnews – Indonesia plans to introduce disincentives for importers that ship large products to Indonesia but do not set up factories in the country. This is viewed as detrimental to consumers as it will lead to higher additional taxes.
"Tax impose should be avoided, for it is the consumers that will take the burden," Anggito Abimanyu, an economic analyst, said.
Anggito argued that the government should rather provide incentives to companies that have large markets in Indonesia but not yet had assembling factory. This measure is considered to be more positive in attracting investment from abroad.
Another factor to observe, Anggito said, is the effort to improve the investment climate in the country. This method is believed to enable companies automatically select Indonesia for investment.
As reported earlier, Head of Indonesian Investment Coordinating Board (BKPM) Gita Wirjawan was upset with Research In Motion (RIM)'s decision to build BlackBerry manufacturing plant in Malaysia. Yet, RIM has been profiting a lot from its product sales in Indonesia.
Industry Minister MS Hidayat voiced same concern, suggesting the government to bring out tax disincentives to foreign investors who only sell their products in Indonesia without building the factories in the country.
Meanwhile, as for the Malaysian side, Economic Counsellor of Malaysian Embassy in Jakarta, Syahril Syazli Ghazali, explained that his country, in particular the Ministry of Trade and International Industry and other agencies have created a positive investment climate in Malaysia, especially amid the current global uncertainties.
"Of course a huge market and low manufacturing cost becomes the main factors to attract foreign investment. But other factors such as infrastructure facilities and fiscal incentives also play a role in the decision making," says Syahril as reported by The Sun Daily, cited by Bernama news agency on Sunday.
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