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Antara, April  18, 2000

PROTESTS AGAINST NEW TAXES IN BATAM BASELESS, BUSINESS LEADER
SAYS

Jakarta, April 18 (ANTARA) - Deputy chairman of the Indonesian
Chamber of Commerce and Industry (KADIN), Soy M Pardede, has
maintained that the protests against new taxes in Batam island,
Riau province are baseless.

Pardede told ANTARA here Tuesday that the taxes -- value-added
tax, sales tax for luxury goods and import duty -- are also
levied in other regions.

"Batam is not a free trade area, but a bonded zone where tax
facility is only given to export, just like in any other bonded
area across the country," he said.

He pointed out that the government decision to impose the new
taxes was actually a correction of its past mistake for giving
Batam special treatment by exempting it from taxes on goods.

According to Pardede, it would be unfair for the government to
continue the exemption of the taxes in Batam, while people in
other regions have to pay them.

Commenting on reports that investors might abandon Batam, he
asserted that they would not do so, because anywhere, a bonded
area only gives tax facility to export products.

"Since those entrepreneurs will not receive less tax facility
for their export products, there is no reason for them to stop
production or to relocate their plants," he explained.

Pardede claimed that the only reason why investors reject the
new taxes in Batam is that they have unjustifiably been
enjoying the tax facility given by former president, Habibie.

The KADIN leader admitted however that the policy for the
application of the new taxes should have been socialized to the
people before applying them.

"Such socialization will enable the people to understand the
imposition of the taxes, thus averting the current furor,"
Pardede said.

(T.PTE-04/INS/15:45/icl/15:58/nn02)

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Didistribusikan tgl. 24 Apr 2000 jam 10:48:47 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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