Government would also give a tax incentive to several shipyards and companies that manufacture agricultural equipment.
Jakarta (ANTARA News) - The Indonesian government has issued a number of policies to improve the countrys economic performance and continue national economic structural reform.

"The first policy is tax allowance for companies investing in Indonesia, companies creating employment, companies that are export-oriented and companies that carry out research and development," the countrys coordinating minister for economic affairs Sofyan Djalil said at a press conference at the presidential office here on Monday.

He said the government would also give a tax incentive to several shipyards and companies that manufacture agricultural equipment.

"We will also issue an anti-dumping policy by imposing a temporary anti-dumping tax and a temporary security import tax on imported products that are traded unfairly through dumping to protect domestic industries," he said.

Sofyan said that "this has long been discussed and fought by several industries and of course we would conduct a thorough study and impose the police selectively so that no industry is to be disrupted by the policy but the ultimate goal of preventing unfair trade which is banned by the WTO is achieved."

In the tourism sector the Indonesian government would starting in April give a free-visa facility to 30 new countries, the minister said.

With the decision, he said, a total of 45 countries would enjoy the facility as soon as the policy is effective.

On mining and natural resources he said the Indonesian government would implement a Letter of Credit system policy for companies operating in coal, oil and gas and crude palm oil business.

"The essence is we have created the L/C regulation in such a way as to not creating distortion and so there is no need to worry that long-term contracts will be cut due to the L/C implementation because the price will drop. That will not happen," he said.

The minister said that the government would also encourage the improvement of the structure of domestic reassurance companies to boost growth in the sector.

"The government will conduct restructuring and revitalization of domestic reassurance industry. We starting today will introduce a new state-owned reassurance company which is the result of merging two small companies that would become our national reassurance company," he said.

At the conference Sofyan was flanked by finance minister Bambang Brodjonegoro, minister of energy and mineral resources Sudirman Said and tourism minister Arief Yahya.

Earlier President Joko Widodo held a limited cabinet meeting to discuss national economic policies which would mostly be effective in April. (*)

Editor: Heru Purwanto
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