EFFECT OF IMPORT DUTY AND IMPORT PPH22 ON ELECTRONICS AND TELEMATICS INDUSTRY PERFORMANCE

This research examines the impact of import duties and PPh22 rates on the performance of Indonesia's electronics and telematics industries, focusing on data from 2022 and 2023. As a vital contributor to Indonesia's economic and technological growth, the industry relies heavily on imported...

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Bibliographic Details
Main Author: Ibrahim Adam, Muhammad
Format: Theses
Language:Indonesia
Subjects:
Online Access:https://digilib.itb.ac.id/gdl/view/87838
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Institution: Institut Teknologi Bandung
Language: Indonesia
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Summary:This research examines the impact of import duties and PPh22 rates on the performance of Indonesia's electronics and telematics industries, focusing on data from 2022 and 2023. As a vital contributor to Indonesia's economic and technological growth, the industry relies heavily on imported components, making it sensitive to fiscal policy changes. Using statistical regression analysis, the study evaluates the effects of these policies on imports, domestic production, and exports. The findings reveal that higher PPh22 rates and import duties significantly reduce imports of electronic components, increasing costs for manufacturers. However, elevated PPh22 rates encourage domestic production, signaling a shift toward local manufacturing as a response to reduced import dependency. Conversely, higher PPh22 rates negatively impact exports by diminishing global competitiveness, while import duties have a lesser but still notable influence on production costs and export performance. The study highlights the need for balanced fiscal policies to sustain industrial growth. Recommendations include optimizing import duties to facilitate access to production inputs and recalibrating PPh22 rates to reduce export burdens. These insights provide practical guidance for policymakers to enhance local production, strengthen export competitiveness, and ensure the industry's longterm resilience in a dynamic global market.