Cooperatives and SMEs Ministry Gives SMEs Raw Materials Import Incentives

Jakarta, InfoPublik – The Ministry of Cooperatives and Small and Medium Enterprises (Cooperatives and SMEs) promised to give raw materials import incentives to productive SMEs. This is a form of support for  Export Purposed Import Facility (KITE) program.

Cooperatives and SMEs Minister AAGN Puspayoga stated this in his press release on Monday (1/30) in Jakarta. One of the industrial centers suitable for the facility is Metal industry center in Tumang Village of Boyolali, Central Java.

"Tumang Village is an example of a productive SMEs,  thus, we will facilitate and give them incentives on the imported raw materials. This program is also crucial for other SMEs in Cepogo village that operates for export market,” he said.

Furthermore, Minister Puspayoga also said that the ministry is commited to strengthening the existing cooperative institutions in the region. The tasks of the institution are managing and coordinating all the craftsmen, collecting the handicrafts, exporting the goods and managing the finance.

KITE is a fiscal incentives program given by the government through the Customs Directorate in the form of annultion and/or refund of import duty (BM) and/or excise tax and also  a free of charge for VAT and luxury sales tax for the raw materials import.

The materials, later on,  would  be processed, assembled or installed on other goods and the final products are for export commodity. KITE is needed by export-oriented SMEs to support and to grow their business in export market.(Translator: Rina Alexandra)