Indonesia grants bonded zone facility to electronic components firm

The Indonesian customs authority in Banten has granted a bonded zone facility to PT Dae Soung Electric Components, a Tangerang-based company specializing in electronic components, particularly cables for the electronics industry. This move is part of the government's ongoing efforts to foster domestic industrial growth through fiscal and procedural incentives.

The bonded zone facility provides significant tax advantages, including the deferral of import duties, exemption from excise taxes, and relief from Value Added Tax (VAT), Sales Tax on Luxury Goods (PPnBM), and Import Tax. These benefits are designed to create a more conducive and competitive business environment, especially for export-oriented industries.

Ambang Priyonggo, Head of the Banten Customs and Excise Regional Office, stated that the facility underscores the government's commitment to supporting domestic industries. He expressed confidence that these fiscal advantages will help PT Dae Soung Electric Components optimize production, enhance its international competitiveness, and stimulate investment and national economic growth. The company anticipates contributing approximately $4 million (around Rp 71 billion) in export revenue and generating new employment opportunities.

Susilo Wardani, a commissioner at PT Dae Soung Electric Components, expressed gratitude for the facility and the customs assistance provided during the application process. He highlighted that the incentives will streamline business operations and improve the company's cash flow. The government hopes that this initiative will not only boost the company's performance in the global market but also positively impact job creation and the broader economy.