In a bid to allow less developed industries to maneuver for growth, the Government of Indonesia has decided to maintain its policy of permitting limited imports of used machinery.
The possibilities of allowing limited imports of such second-hand machinery even in 2009 was discussed threadbare by the Textile, Machinery and Metal Industries Department in the Ministry of Trade and Industry.
A Government official told Fibre2fashion that importing of second-hand machinery is quite important since the country does not undertake manufacturing of machines on its own. Besides, these goods are comparatively less expensive than the new ones.
However, he added saying that talks are still underway as to whether this policy would be viable since used machinery have a record for not being economic and having high energy consumption. It is advisable to buy machineries used for 5-10 years because those used for 20 years and over would be less productive and more prone to wear and tear.
It was decided that the Government would completely lift the policy of allowing such imports in April this year, but following a realization that the domestic business world still required these products for cutting down on costs, the authorities have revised their initial stand.
Nonetheless, the trade and industry ministry is still skeptical about how long the import of used machinery would be allowed and have suggested issuing a list of types of machinery to be permitted for restricting excessive inflow of such goods.
Moreover, the industry minister also said that imports would be allowed only to those industries who require it for production and not to those wanting to re-sell them.
Fibre2fashion News Desk - India
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