House to Write to Finance Minister as Horticulture Tax Remains High

22-07-2020 / KOMISI IV

Chairperson of Commission IV of the House, Sudin, leads a meeting with Directors of GGPC Company on a working visit to Lampung during recess, Tuesday (21/7/2020).Photo : Andri/Man


Commission IV of the House of Representatives of the Republic of Indonesia received report from Directors of Great Giant Pineapple Company (GGPC) on the imposition of the very high export taxes on a number of horticulture commodities originated from Lampung. Commodities such as pineapple and banana are taxed up to 56 percent to enter European and Asian Markets. In response to that situation, the Chairperson of Commission IV said that the commission would send a letter to the Minister of Finance.


“In the next session period, after we receive input from GGPC and other parties, we will send a letter to the Ministry of Finance. If needed, we will also write to the Coordinating Minister of Economy or to the President. We will inform the real situation. “How can we increase export if the tax is so high?” Sudin said after he presided a meeting between the Commission IV and Directors of GGPC Company. The meeting was held when the commission paid a working visit to Lampung during recess, Tuesday (21/7/2020).


Previously in his remarks, Government Relation of PT. GGPC Willy Soegiono said that the government imposes very high export taxes on the horticultural products such as pineapple and banana when exported to European or Asian markets. He gave an example of products exported to Turkey are taxed up to 56 percent, while Malaysia only imposes taxes of 35 percent. “For years, our export products were likely to undergo a correction from other countries. However, Alhamdulillah (thank God), we still can survive despite the high taxes,” stated Soegiono.


“In 2019, GGPC exported 13,500 containers of canned fruit and 4,000 containers of fresh fruit. We exported 40-50 containers per day. In that year, Indonesia became the largest supplier of pineapple in the world,” he explained. Soegiono went on saying that currently his company needs a legal agreement and ease of business licensing. “To whom will we turn to if not to our representatives?” Soegiono asked.

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