Indonesian Government Has Approved Incentive of Free VAT for Domestic Shipbuilding Industry

To improve the competitiveness of the domestic shipbuilding industry, President Joko Widodo (Jokowi) finally approved free value-added tax (VAT) for the shipbuilding industry.  This was conveyed by Minister of Finance, Bambang Brodjonegoro, when the announcement of the Economic Policy Package Volume II, at the State Palace, Jakarta, Tuesday (29/09/2015).

"It rises PP (Government Regulation) No. 69 of 2015. The headline Import and Transfer of Certain Transport and Delivery of Taxable Services Transport Related to Certain uncollected Value Added Tax (VAT). It gives an incentive VAT is not levied for multiple means of transportation, such as shipbuilding, trains, and planes as well as spare parts, "said Bambang.

PP goal is to make the production cost of transportation in the country could be cheaper, and could compete with foreign products. "For the shipyard, this incentive has been long awaited," said Bambang.

Article 1 PP is confirmed, certain transport equipment which is not levied on the import VAT is:
1.  Transportation equipment in the water, transport equipment under water, means of transportation in the air, and rail, as well as spare parts imported by the Ministry of Defense, the Armed Forces of Indonesia, the Indonesian National Police, and by other parties designated by the Ministry of Defense, Armed Forces Indonesia, and the Indonesian National Police to perform the import;
2.  Ships, river transport, boat transport lake and boat ferry transport, fishing vessels, vessel pilot, tugs, barges, and spare parts, as well as tool safety of navigation and safety equipment man imported and used by the Shipping Company National Commerce, National Fishing Company, Corporate Service Provider of the National Ports and River Transport Service Provider Company, Lake and Ferry National, in accordance with its business activities;

With this regulation may support investor to work in the Indonesia territory specially in Batam, as well known Batam it self available 110 shipyards to do various job such new building, repair, laid up and others marine/offshore activity. Kindly if you need assistance or more information regarding Batam for your purpose such mention above you may contact me through my mobile number +628126109566 with all my pleasure to assist you.

Finally I must say that welcome to the amazing land so call Indonesia.