An Analysis on Relaxation of Import Facility For Export Purpose (KITE): A Case Study of PT Indonesia Asahan Aluminium

Abstract

BPS-Statistics Indonesia, noted the value of imports in 2018 grew 20.15% while export values only grew 6.65%.Accordingly, there was a trade deficit of USD 8.57 billion. For boosting export, the government gives exemption or reimbursement of import duty and other import related taxes through the Import Facility for Export Purpose(KITE). PT Indonesia Asahan Aluminum (Inalum) engages in aluminum processing industry. Inalum suppliesintermediate input to third parties such as aluminum extrusion companies which export the end products. So far, imports of Inalum are still subject to import duty and other import related taxes. This study aims to provide an overview of the KITE expansion scheme that can be provided to Inalum. This study uses a descriptive exploratory method, moving from existing data then referring to the relevant provisions and then proposes new provisions plan for the expansion of KITE. This study found there is a great opportunity to overcome this deficit by providing an expansion of KITE. Then, this study discovered the extension of KITE to Inalum and the third parties had a significant impact on increasing exports. And then, from the analysis of the existing KITE provisions, this study found the need for expansion of the facility