BKPM to facilitate plant equipment and machinery imports
Head of Investment Coordinating Board (BKPM) Franky Sibarani announced yesterday that he will facilite the imports of plant machineries and equipments. “We will speed up the custom clearance so that investors are able to commence their construction in accordance with the schedule,” he said at his office in Jakarta on Monday (1/11).
It’s usually difficult for new companies to import equipments and machineries for their future plants. It’s because the Directorate General of Customs (DGC) will place those companies in the red channel due to their high risk. This means that the Customs will carry out a documentrary check as well as a thorough physical examination of the imported goods which takes five day which will delay the plant’s construction schedule.
Under the new policy, these companies will be exempted and placed in the green channel instead. This means that the Customs will only verify their documents without having to physically check the imported goods. “This will cut the process to 30 minutes,” he said.This facility is only available for companies that are planning to construct a plant. All they have to do is to submit an Investment Activity Report (LKPM) along with the application for the facility to the BKPM. Then the agency will verify and forward them to the Customs.
Currently, BKPM has proposed 25 companies with investments worth IDR100 trillion to receive the facility from the Customs. Chairman of Indonesian Food and Beverages Association (GAPMMI) Adhi S. Lukman welcome the new facility. However, he expects the facility will not be limited to capital goods only. “If it’s possible, raw material (imports) can receive the same facility too,” he said.