TEMPO.CO, Jakarta Minister of Industry Agus Gumiwang Kartasasmita said his ministry was proposing criteria for cars that were free of Sales Tax on Luxury Goods or PPnBM to the Ministry of Finance. This car will be referred to as the people’s car.
“We ask that he is no longer categorized as a luxury item so that there is no longer a PPnBM regime that applies to people car people. I have sent a letter to the Minister of Finance, just waiting for his response,” Agus said at a press conference, Wednesday, December 29, 2021.
And Gumiwang said it was trying to redefine the criteria for luxury goods and create a definition of the people’s car. He said the so-called people’s cars must meet several criteria.
First, the price must be cheap. He said the cheap range in question was a maximum of Rp. 240 million. “In our eyes, a car with a price of Rp. 240 million is already a people’s car and cannot be called a luxury item,” said Agus.
In addition, Agus said the CC of the vehicle was also not high, a maximum of 1,500 CC. The third criterion is regarding the deepening of manufacturing as much as possible in Indonesia.
“So our count, the car that end to end Indonesian car if local content or local purchase 80 percent,” said Agus.
Agus said this policy plan was taken to encourage the automotive industry. He said the automotive industry is very influential for economic growth, not just industrial growth.
He said the statement was also in line with the news that the Japanese economy had begun to rebound with the main strength being the automotive industry. “The automotive industry is the key to a country’s economic growth. Forward linkage and backward linkage large, the added value is also extraordinary. That is one dimension that can be seen how important automotive is,” he said.
Also Read: Toyota Says About 80 Percent Local Purchasing So Requirements for Permanent PPnBM
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