There Are 3 Percent PPnBM Incentives, Hybrid Car Manufacturers Are Asked To Register A Brand Immediately

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita asked four-wheeled automotive companies to immediately register a hybrid car model with the government in order to get PPnBM incentives of 3 percent.

"For the hybrid, I ask that the hybrid car manufacturers in Indonesia immediately register the brands with us so that starting January 1, 2025, they can enjoy stimulus incentives prepared by the government," Agus said at a press conference on the Economic Stimulus Package for Welfare at the Coordinating Ministry for the Economy Office, Jakarta, Monday, December 16.

Agus said that this incentive program is basically an LCEV program that has been regulated in the Minister of Industry Regulation (Permenperin) Number 36 of 2021.

"Including in it there is an arrangement regarding the value of TKDN which must be a criterion," he said.

He added that in the near future there will be three companies that will build automotive factories in the country. The three companies, namely Build Your Dreams (BYD), Citroen and Aion.

"It is also reported that in 2024 there are three companies that are committed to building production facilities or factories in Indonesia for automotive purposes, especially EVs (electric vehicles), namely BYD, Citroen and the third Aion," he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto officially announced the provision of Sales Tax incentives on Government-borne Luxury Goods (PPnBM DTP) of 3 percent for hybrid cars.

"For the middle class, the government continues the DTP VAT for property and also continues the facilities for battery-based motorized vehicles or electric vehicles for the handover of four wheels based on TKDN," said Airlangga.

"Then related to the latest one is PPnBM DTP for hybrid motorized vehicles. Now, VAT for hybrid is the government provides a discount of 3 percent," he continued.

In addition, Airlangga added, that the PPnBM policy and import duties for fully imported electric cars (completely built up/CBU) and decomposed (completely knock down/CKD) are still valid.

"Well, in accordance with the ongoing program, this is also an exemption from CBU EV import duties for certain wheels in full or CBU and certain four-wheeled CKD," he said.