Indonesian government canceled BMDTP due to underutilization

On 18 January 2021, the Indonesian Directorate General of Customs and Excise (DJBC) revealed that the country will not renew the Government Borne Import Duty (BMDTP) on imports of goods and materials in the year 2021. 

Government Borne Import Duty entitles qualified manufacturers to zero or reduced import duties on imported goods and raw materials. 

Explaining the reasons, the Director of International and Interagency Customs said that the scheme was seriously underutilized. In fact, the government allocated IDR 583.28 billion budget for the BMDTP scheme to help 33 industrial sectors affected by the pandemic for the period from 22 September 2020 to 31 December 2020. 

"The value of BMDTP used was IDR 91.41 billion or 15.67% of the total budget ceiling provided," the Director said. 

He added, “In 2021 the government will no longer budget for BMDTP in the State Budget with the consideration that these facilities are less effective because the business process is quite long so that the realization is not optimal,” he said.

However, the government is studying other appropriate schemes to support the domestic industry more effectively.