History of Karimun's Free Trade Zone

Free Port in Karimun's FTZ

A unique geographic location for Karimun make it be a central position, because it can become a gateway for investment inflows, goods, and services from abroad that are useful for improving the welfare of the people of Indonesia.

Besides being able to function as a central development of the technology industry that can provide benefits in the future and development of industries with high added value, Karimun area can also serve as collection points and distribution of products from and to all parts of Indonesia and other countries.

Given its location right on the path to international marine vessels, Karimun the region can become the center of international cruise ships. In addition to Karimun position supported by the condition of Sumatra which has been greatly developed, facilitate the provision of labor and workforce development tools and capabilities.

In 1997 Indonesia and ASEAN countries experiencing an economic crisis so severe that many businesses are collapsing. The result is a termination of employment so that the massive unemployment rose sharply while job opportunities are very limited.

For economic recovery, it is necessary to boost economic growth by bringing capital from abroad in the form of FDI (Foreign Direct Investment). The existence of free zone as a center of trade and free harbor, should be able to encourage competition, not only domestically, but also with other countries. Any large country so our competitors. Hence the Act required the aspirational and in accordance with these challenges.

FTZ Definition

An area within the jurisdiction of Indonesia separated from areas that are free from the imposition of customs duties, value added tax (PPh), income on luxury goods tax (PPnBM) and excise (Article 1 paragraph 1 of Law No. 36/2000).

Free Trade Zone and Free Port apart from the customs area more intended for the benefit of granting fiscal facilities and not stated explicitly or implicitly that the area is not applicable statutory provisions in the field of customs. (kepri online daily)