Abstracts » Business, international

Jakarta slaps 25% import tariff on ethylene, aiding Chandra Asri

Article Abstract:

The Indonesian government has implemented a 5% tariff and an additional 20% tax on imported ethylene. Observers viewed that new tariffs as a means of protecting the controversial $1.9 billion Chandra Asri Petrochemical Complex. The higher costs of importing ethylene will force large polyethylene manufacturers such as BP subsidiary, PENI, to buy most of its ethylene from Chandra Asri. Indonesian businessmen and economists expressed concern that the higher ethylene costs will trickle down to other products, specifically plastics and packaging items.

Cyclic Crude and Intermediate Manufacturing, Ethylene, Taxation, Tax policy

---

Suharto juggles protection of industries with opening economy to foreign firms

Article Abstract:

The Indonesian government's deregulation reforms face an acid test in the case of the petrochemical industry. While its nascent petrochemical industry, which Pres. Suharto views as a strategic sector, may need trade protection to be able to fully develop, this must be balanced against the imperative to open the domestic economy to international competition. The World Bank, a major creditor of the country, has also warned against the imposition of stiff tariffs on imported petrochemicals.

Petrochemical Manufacturing, Cyclic crudes and intermediates, Petrochemicals, Trade Relations NEC, Analysis, International trade, International economic relations, Trade policy, Commercial policy, Petroleum chemicals industry, Petrochemicals industry

---

Analysts knock Jakarta's moves to ease trade

Article Abstract:

Indonesia's deregulation moves have failed to meet the expectations of foreign and local economists. The government has recently unveiled a round of tariff reductions for some 6,030 items, effective immediately, as part of a professed commitment to economic reform. However, analysts say the deregulation package does not reduce nontariff barriers and does nothing to alter the protectionist arrangements, especially in the agricultural trade sector.

Economic Programs, Administration of Economic Programs

Some parts © 2012 Advameg, Inc.