Govt exempts fishery products from export duties

Jakarta (ANTARA News) - The government has exempted all kinds of fishery products from export duties in a bid to lure more investors to develop the country`s fishery industry, a spokesman said.

Marine Resources and Fisheries Minister Freddy Numbery in a hearing with the House of Representatives (DPR)`s Commission IV here on Tuesday said the policy was adopted as a step to provide investment incentives for investors.

"This is actually an integrated fishery industrial development in Indonesia after the abolishment of the system of licensed fish-catching operations by foreign fishermen," he said.

In addition to the exemption of export duties, the government would only collect a duty of 0 percent to 5 percent on import of goods to develop fishery-related industries in the country.

Freddy said some other incentives offered by the government to attract more investors to get engaged in fishery industry was by exempting the import of certain fishery-related industry goods and maintenance services from duties.

A 50 percent deduction of land and building tax, incentive in compensation of loss which may not reach more than eight years for foreign and local investment.

Companies that had been operating in Indonesia for over seven years with good performance would enjoy easy and quick issuance of business permits.

Since 2006, he said, the marine resources and fisheries ministry had imposed a joint venture system on foreign vessels which caught fish in Indonesian waters.

According to Freddy, after instituting a number of investment incentives, there were about 13 foreign companies which had tendered applications for the allocation of fish catch areas with an investment value of US$203.26 million and in the form of rupiah amounting to Rp619,55 billion.