Income Tax Hike Has No Effect on Logistics Sector

As an effort to control deficits of trade balance and current account, the government is restricting imports on 1,147 kinds of consumer goods. In Finance Ministerial Regulation No. 110/2018, the government sets a higher tax income (PPh) Article 22 of 7.5% to 10%. This is expected to maintain rupiah exchange rate against US dollar.

Finance Minister Sri Mulyani, ever since the issue of import control was brought up, has assured that in principle, the policy was not meant to become an obstacle to the growth of investment and exports. That is why the restriction is mostly applied on consumer goods that have already been produced domestically.

"Most of the goods with import restriction are consumer goods, which mainly will not have effect on investment and export. They are also produced domestically already, so the policy will not impact the people massively; if it does, it will be in a positive way because domestic industry can take advantage of this opportunity as best as they can," Sri Mulyani told, Monday (August 27).

The government's policy gained support from the likes of Indonesian Industrial Estates Association Chair Sunny Iskandar and Indonesian Association of Synthetic Fiber Producers Secretary General Redma Gita Wirawasta. Sunny was of the opinion that import restriction brought a breath of fresh air to domestic manufacturing industry, while Redma said that the control would provide positive opportunity for domestic textile products.

"Consumption of textiles and textile products in Indonesia increases 6% annually. However, the increase in demand is not felt by domestic textile industry. It's the textile importers that have been benefiting instead," Redma told, Wednesday (September 5).

The government imposes import restriction on 210 kinds of luxury goods, 218 kinds of consumer goods that mostly have been domestically produced, and 179 kinds of goods used in consumption process and other purposes.

The logistics sector won't be much affected by the policy, because neither consumer goods nor luxury goods are commodities mostly served by the sector.

According to Indonesian Chamber of Commerce and Industry vice chair in charge of transportation, right now, logistics service providers only deal with imports of automotive spare parts, as quoted by, Wednesday(September 12).

Furthermore, domestic logistics won't be much affected by that particular policy from the government. This is because the policy brings no significant obstacle to the domestic business.

Providing the best logistics services, SELOG as a subsidiary of PT Serasi Autoraya (SERA) supports the government's policy. SELOG, present to meet customers' demand of end-to-end logistics service with various offers, is committed to continue providing the best services for the people.

SELOG offers, among others, contract logistics, which is suitable for customers who want to focus on their core competence for profit growth. They will be helped by this integrated logistics service that covers everything from planning, implementation, to monitoring process.

Besides contract logistics, SELOG also offers other services such as shipping services, shipping agency, freight forwarding, and warehouse and yard management. For express courier service, SELOG is also prepared to send packages using suitable means of transportation.

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