Industries baffled with FTA requirement, Sea Toll to Batam is a must

Hang Nadim desperately needs more international flights
Hang Nadim desperately needs more international flights

Free Trade Agreement (FTA) stipulated in Regulation of the Minister of Finance (Permenkeu) Number 229/2017 can not be utilized properly by the entrepreneurs in the industrial area. Requirements and also infrastructure are considered not optimal so that considered difficult for entrepreneurs.

BATAM (infolog); “Until now there is no industry players who take advantage of this FTA,” said Chairman of the IPO Coordinator Kepri OK Simatupang in Batamindo Industrial area on Wednesday (7/3) as quoted by Batampos.co.id as saying .

In general, the Permenkeu aims to provide convenience for business and industry in Batam. This Permenkeu regulates the procedure for imposition of import duty tariff on imported goods based on international agreement or agreement.

Thus, it is possible to enable business actors to export their products to customs areas without being subject to 10 percent import duty. However, the requirements required to obtain this tariff exemption facility are still considered to be burdensome.

An example of a difficult requirement is the company’s obligation to have IT Inventory that can be connected to the Customs online system. The objective is that Customs can monitor the movement of goods in and out of industrial areas that get the facility of exemption of import duty.

Unfortunately, according to OK, the cost to build IT Inventory is quite large. Furthermore, the government has not set clear standards on IT Inventory. And there are no technical regulations that govern it.

“We agree with this system. But we have the platform made by the government. So there is standardization. Problem Set Up IT Inventory until now there has been no common ground, “he said.

In addition to IT Inventory which is an absolute requirement, other requirements are about the delivery of raw material conversion into finished goods and blueprint production process is also called too burdensome.

OK said this provision is better removed because of incriminating entrepreneurs to get this FTA facility. “If the terms are simple and friendly investment, I believe this will be the main attraction for Batam,” he added.

The last problem is the logistics problem. The cost of logistics from Batam to Jakarta is priced at approximately Rp 14 million for 40 feet containers. With the same size, the cost of logistics from Singapore to Jakarta only Rp 10 million.

This condition is exacerbated by the frequency of logistics transport from Batam to Jakarta which is only there once a week. While the voyage from Singapore to Jakarta is available every day. Such problems make FTA policy encounter a very large obstacle stone, where good policy exists but without adequate fleet support.

“On the one hand we are given convenience because not subject to 10 percent import duty. But on the other hand logistics costs more expensive, “he explained.

This logistical problem must be fixed immediately. To optimize the benefits and added value of the implementation of preferential tariff facilities, logistics costs should be cheaper and more frequent.

“One solution could be using Sea Tol. Toll Sea must pass through Batam, “he said.

OK also convey all issues related to FTA which he disclose is all the complaints that are accommodated from entrepreneurs industrial area incorporated in HKI Kepri.

Responding to this, Head of Sub-Division of Compliance Guidance and Information Service of Batam Customs Service Office (KPU), R Evy Suhartyanto said it is actually not difficult to create IT Inventory.

Because IT Inventory actually already exist in each industrial company, let alone big company. So it does not require a certain standard, let alone create a new one.

“IT Inventory is a program that makes the boss of the company can know the inventory of goods and actually each company already has. Well that’s synchronized with the Customs system, “he explained.

He advised that industrial companies immediately apply for synchronization of IT Inventory to Customs to immediately get the facility.

“First, we will make the module. Newly trained, “he added.

Then, regarding the delivery of raw material conversion into finished goods and blueprint production process can not be negotiable.

The process said Evy is very important to be able to monitor the process of income and goods expenditure in the area of free trade Batam.

“Conversion of finished goods raw materials that aims to regulate revenue and set the amount of preferential tariffs required,” he said.

Indeed, Evy admitted that until now there is no company that utilizes FTA policy to facilitate its business.

“There is not yet. They may be preparing a conversion and blueprint that takes a long time, “he said.

In line with Evy, BP Head of Batam Lukita Dinarsyah Tuwo said IT Good Inventory it is very important to have companies incorporated in the area. (ac)

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