Govt may ban import of second hand machinery

26 Nov '08

2 min read

The Indonesian government is planning to ban import of second hand machinery in the country. This move on the part of the government is to help the domestic machinery industry as well as reduce energy consumption, said Mr Ansari Bukhari, Director General, Ministry of Trade and Industry.

He said that he would draft a revision to the 2007 ministry regulation on second hand machinery imports and that any way it was up for review at the end of the year since it would expire effectively from December 31, 2008.

He added by saying that the ban on import of second hand machinery should be imposed since they consumed at least 15-20 percent more energy than new machines and secondly importing such machines was detrimental to the interests of the domestic machinery manufacturing industry.

According to statistics from the office of Central Statistics Agency, imports of machinery touched US $7.44 billion in the first half of the current year against $3.58 billion in the comparable period of 2007. But again exports from the machinery manufacturing sector also grew to $1.95 billion from $1.61 billion in the same period under preview.

A few sectors from among the many industries which imports second hand machines are textiles, garment and footwear.

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