No Avanza in 11 Prospective Cars for Permanent PPnBM Discounts

Jakarta, CNN Indonesia —

New requirements that the Ministry of Industry wants to propose (Ministry of Industry) In order for the 100% discount on Sales Tax on Luxury Goods (PPnBM) to be made permanent, an automotive product must have a local content of at least 80 percent.

According to the Minister of Industry Agus Gumiwang, the condition is given so that the country’s automotive industry can have a more positive impact on the domestic economy which is currently under pandemic.

Agus said the exemption of PPnBM for the automotive industry really needs to be fought for and needs special attention.

Because, currently there are 21 industrial companies of four-wheeled vehicles and more with a production capacity of 3.5 million units per year.

On the other hand, the vehicle component companies, which number 319 thousand, are also mostly MSMEs. Then this industry absorbs 1.5 million workers directly and tens of millions of workers indirectly, thus absorbing an investment of Rp. 150 trillion.

11 models of potential recipients of permanent PPnBM discounts

Not all automotive products sold in Indonesia have such local content.

It was observed that only 11 models met the criteria, citing the attachment to the Decree of the Minister of Industry Number 1731 of 2021 concerning Motorized Vehicles with PPnBM on the delivery of taxable goods classified as luxury borne by the Government for the 2021 Fiscal Year.

The 11 models include the Toyota Veloz with 83 percent local content and the Toyota Kijang Innova 2.0 with 83 percent. Interestingly, the car model of a million people, namely the Toyota Avanza and its twin, the Daihatsu Xenia, is not included in the list because the local content is not up to 80 percent.

Then Toyota Agya, Toyota Calya, Daihatsu Sigra, and Daihatsu Ayla, each containing 85 percent local content.

Next is the Mitsubishi Xpander, Mitsubishi Xpander Cross, and Nissan Livina which have 80 percent local content each. While the Honda HRV 1.8L 84 percent.

From the attachment, it is also known that the product with the highest local content is the Honda Brio Satya with 91 percent.

The car production target for 2021 has been exceeded

Agus Gumiwang Kartasasmita said the car production target of 850 thousand in 2021 had been exceeded.

Production of automotive products starting from four-wheeled cars in January to October has reached 890 thousand units, an increase of 62.4 percent from the same period last year and followed by sales rising 71 percent.

“I am optimistic that sales will also increase along with various events and promos held by APM towards the end of the year to stimulate people’s enthusiasm to buy motorized vehicle products,” said Minister of Industry Agus in an official statement.

According to the Minister of Industry, the Government-borne Luxury Goods Sales Tax (PPnBM DTP) stimulus policy of up to 0 percent will have a positive impact on the recovery of the domestic automotive industry sector.

“I give my appreciation to automotive manufacturers and dealers who help, encourage, facilitate buyers to get and take advantage of this stimulus with additional promotions and other price discounts,” said Agus.

[Gambas:Video CNN]

(ryh / mik)

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