This research aims to estimate the extent of the effect of exemption and/or restitution of import duty, Value Added Taxes (PPN) and Sales Tax on Luxury Goods (PPnBM) through the Ease on Import for Export Destination (KITE) policy on export value of KITE facility recipients in Indonesia. Furthermore, the research analyses the influence of the Real Effective Exchange Rate (REER), the world’s real GDP and the crisis of 2008-2009 to the export value of the company receiving KITE facilities. This study uses quarterly data from 2007 to 2nd quarter of 2017 conducted on two hundred and fourty eight KITE facility receivers throughout Indonesia.

There was a change of KITE policy during the period of the research, so that the evaluation of KITE policy which encouraged export increase was also conducted. Besides, it also investigates how the effect of KITE facility to export value from the top ten export commodities with KITE facility in Indonesia. The result shows that KITE facility has significant effect on export value with elasticity of 0.48. This means that the increased provision of KITE facilities will encourage the productivity of the company because it can suppress the price of production to increase the competitiveness of domestic products in the international market or in other words can increase the value of exports.

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