Jakarta, CNBC Indonesia – The government has provided incentives for the sales tax on luxury goods (PPnBM) borne by the government (DTP) for the purchase of cars. Not only for consumers, this ‘sweet jamu’ will also be felt by investors in the stock market.
The car PPnBM incentive applies with the following conditions:
- Sedan or motor vehicle station wagon with a cylinder capacity of up to 1,500 cc.
- 4×2 axle motor vehicle with cylinder capacity up to 1,500 cc.
- Local content is more than or equal to 70%.
This facility is not valid forever, there is a period of time. The first stage is PPnBM fully borne by the government (100%) for the tax period until May 2021. Then the second stage is reduced by 50% which applies in June-August 2021. The last stage is that the government only bears PPnBM of 25%, this applies in September-December 2021 .
By providing PPnBM incentives, car prices can be cheaper by up to tens of millions of rupiah. It is hoped that this will attract the Indonesian middle class to buy cars. Understandably, during the pandemic the middle class chose to increase saving rather than consumption.
“We want our utilization and sales to return to a level close to 1 million. If it approaches this 1 million, this industry can also export competitively. Then this sector is being carried out. financing around Rp. 360 trillion a year. So of course, when the capacity or sales of the automotive and property sectors are good enough and encourage people’s purchasing power, they can directly add growth of 0.9-1% by multiplier effecthim, “said Airlangga Hartarto, Coordinating Minister for the Economy.
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