The reaction of Japanese APM who ‘benefited’ a 100 percent permanent PPnBM discount

Jakarta, CNN Indonesia —

Japanese car brand, Daihatsu, Honda and Toyota responding to the government’s plan to continue the relaxation of the Sales Tax on Luxury Goods (PPnBM) to 100 percent for new cars. The 100 percent permanent PPnBM relaxation will be enforced with the excuse of boosting the domestic automotive industry.

Yusak Billy, Business Innovation and Sales & Marketing Director of Honda Prospect Motor (HPM) explained that the plan was very good in the midst of the COVID-19 pandemic.

According to Yusak, his party is still studying the requirements that the government wants regarding the rules that are allowed are cars with a minimum 80 percent local content. He himself welcomed the Honda brand as a car that “benefited” the regulation.

“For permanent PPnBMDTP with 80 percent local purchase requirement, we will study it after getting more detailed regulations for timing and other implementing instructions,” said Yusak via text message, Monday (12/13).

The PPnBM policy borne by the government has now been implemented with several conditions including a minimum local content of 60 percent and will end on December 31, 2021.

The current policy includes a 100 percent discount on PPnBM for cars with engines up to 1,500 cc, a 50 percent discount for 4×2 cars with engines up to 2,500 cc, and 25 percent for 4×4 cars with engines up to 2,500 cc.

For this program, there are 36 car brands that enjoy this policy because the local content is in accordance with the provisions. Meanwhile, if the requirement is 80 percent, only 11 models of appropriate car brands.

Separately, Marketing Director of Toyota Astra Motor (TAM) Anton Jimmy said that his party also could not respond too far to the plan until the government “knocked on the hammer” the permanent 100 percent PPnBM discount was in effect.

“We are still waiting for the formal regulations, while internal coordination, including with the production or factory,” said Anton.

Commitment to increase TKDN for automotive products, read to the second page —>>>

[Gambas:Video CNN]