The government issued various policies to encourage industrial development and improve the national economy. One of them is by issuing a policy called KITE (Import Facility for Export Purpose).
The KITE policy is intended for export-oriented businesses by facilitating the flow of imports of raw materials for the production of finished goods which will later be exported. However, of course, not all export businesses and not all imported raw materials can be subject to this KITE facility.
KITE (Import Facility for Export Purpose) is a policy of the Indonesian Minister of Finance whose implementation is carried out by the Directorate General of Customs. KITE itself is defined as the treatment of imported goods or assembled goods that will be exported and can be given Import Duty (BM) relief.
KITE is not given to all companies, but only companies that are export-oriented and have met the requirements as KITE recipients. Likewise with imported products. Where importation with this facility can only be used to import raw materials to support products that will later become products ready for export.
Thus, imported goods that are processed, assembled, or installed on goods that will later be exported can get import duty relief.
This policy is carried out as one of the efforts to support increased exports. Where exporters can reduce production costs so as to increase production capacity which in turn can increase export volumes.
Provisions related to this policy have been regulated in Article 26 of Law Number 17 of 2006 concerning Amendments to Law No. 10 concerning Customs.
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