Govt told to curb flow of cell phones into Batam

Fadli, The Jakarta Post, Batam | Archipelago | Sat, February 16 2013, 10:51 PM

The Batam Legislative Council (DPRD) urged the Trade Ministry to implement an import regulation on mobile phones as every month, around 70,000 cell phones flood Batam’s markets through duty-free facilities. The duty-free cell phones are sold to consumers for the same price as the handsets subjected to import tax.

It is alleged that many of the imported handsets are from China and Singapore. It is highly likely that the imported cell phones are smuggled to other parts of Indonesia.

Yudi Kurnain, who chairs Commission II overseeing trade and industry at the council told The Jakarta Post on Friday that the DPRD praised the Trade Ministry’s decision to issue Trade Minister Regulation (Permendag) No.82/2012 on the import of cell phones and other electronic goods.

Yudi said that the council was apprehensive about the fact that imported cell phones were sold to consumers in Batam for the same price as those with no tax exemption in other parts of Indonesia. Consumers in Batam did not benefit from the tax exemption facilities provided by the government to importers in the area, he said.

“We have received complaints that many products are sold without a user guide. There are also cell phones allegedly recycled, in which used phones are repacked so that they look like new,” said Yudi.

On Thursday, the DPRD summoned several cell phone importers and officials from several government institutions, including the Customs and Excise Office, the Trade and Industry Department, and the Batam Free Zone Trade Area Authority. During the meeting, the legislators asked why cell phones imported with tax exemption facilities into Batam were sold at the same price with the goods that were not exempt.

Importers in Batam were granted tax exemptions amounting 12.5 percent, comprising 10 percent value-added tax (PPN) and 2.5 percent income taxes (PPh).

Yudi said the Trade Ministry needed to seriously implement Permendag No.82/2012 to protect the rights of consumers. (ebf)