Indonesia: B20, high import tax policies have not significantly reduced imports: BPS

• Oct 16, 2018

The government’s policies aimed at reducing imports have had little affect on the trade balance with the country booking only a meager trade surplus, Statistics Indonesia (BPS) statistics distribution and service deputy head Yunita Rusanti said in Jakarta on Monday.

Speaking at a press conference, Yunita said Indonesia had recorded a trade surplus of US$230 million in September, after suffering month-to-month (mtm) deficits in the previous months — US$ 1.02 billion in August and US$2.03 billion in July.

“The introduction of B20 has not shown results,” Yunita said, referring to Presidential Regulation (Perpres) No. 66/2018 mandating the use of 20 percent blended biodiesel ( B20 ) that took effect on Sept. 1. The policy was introduced to reduce oil imports.

Another recently enacted policy is the introduction of higher import tariffs on 1,147 imported items, mostly consumption goods, which took effect on Sept. 5. Yunita said he had also not seen results from this policy.

Exports decreased 6.58 percent mtm to $14.83 billion in September, from  $15.82 billion in August. Meanwhile, $14.60 billion in imports were recorded in September, a decrease of 13.18 percent mtm from the figure in August.

Yunita said that BPS had not been able to estimate the impact of the policies on the trade balance this month. “We have not been able to make an estimation. I hope it will help to decrease imports. We will see next month,” he added. (bbn)

Source: http://www.thejakartapost.com/news/2018/10/16/b20-high-import-tax-policies-have-not-significantly-reduced-imports-bps.html