What advantages do you thinking about Batam Free Trade Zone? Free of tax? Wrong! Today, three commodities are objected of tax by the Indonesian President decision, are cars, alcohol drinking water and electronics product. This law known as PP (Peraturan Pemerintah) Number 63. The PP 63 until now still going on.
As I wrote in this blog before, that the local government and Chief Board of Batam Zone has met with the Indonesian President, Susilo Bambang Yudhoyono for talk and discuss about PP 63 cancellation. That meeting is following with the two ministers serious discussion between Sri Mulyani (Economic Minister) and Mari Elka Pangestu (Trading Minister). Together focusing to change the PP 63 with the new friendly regulation for the foreign investor.
But, two days ago, my friend Suyono Saputra (journalist of Bisnis Indonesia Economic Daily) interview Muhammad Lutfi (The Chief of Coordinating Investing Board) in Batam Island. Lutfi said to him, that Indonesian Government don’t want to cancel the PP 63. Because no contradicting between PP 63 with the Batam FTZ law. But, he promised that Indonesian Government will release the friendly role of PP 63. What’s that? No one knows today. (!)
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