During discussions with Indonesian officials, Sejin requested government support to facilitate the relocation process. The company outlined several critical areas where assistance is needed, including the technical survey and assessment of its machinery, which involves relocating non-new capital goods from its plant in China. Additionally, Sejin sought approvals to designate its new facility as a bonded zone, enabling smoother customs processes and tax benefits.

Further requests included permits for its employees to enter Indonesia during the COVID-19 pandemic, ensuring a seamless transition of key personnel for the operation of the new plant. The company also applied for tax allowances to reduce its operational costs and enhance competitiveness.

BKPM’s Support and Tax Incentives

The Indonesian government, through BKPM, has pledged comprehensive support to ensure the relocation proceeds smoothly. One notable milestone in this partnership is the approval of Sejin’s tax allowance application. This marks the first tax allowance approved by BKPM since the authority to issue such approvals was transferred from the Finance Ministry.

BKPM’s chief, Bahlil Lahadalia, has emphasized the agency's commitment to facilitating Sejin’s relocation and ensuring the company achieves its commercial production target. The goal is to have the facility operational and contributing to Indonesia’s economy by the fourth quarter of 2020.

Boosting Indonesia’s Economic Competitiveness