At The Opening Of GIAAS, Coordinating Minister Airlangga Mentioned The Growth Of The Automotive Industry As A Symbol Of Indonesia's Economic Awakening

JAKARTA - The sales performance of automotive industry products has also been affected in the midst of the COVID-19 pandemic. However, when the government's policy regarding the relaxation of PPnBM was implemented, the performance of car sales from March to September 2021 continued to strengthen.

Car sales during September 2021 were recorded at 84.11 thousand units, an increase of about 41.5 percent compared to February 2021.

"To encourage and accelerate consumption, as well as increase the utility of the automotive industry, the Government continues to expand the policy on the relaxation of the Sales Tax on Government-Born Luxury Goods (PPnBM-DTP), as a follow-up to the successful sales of four-wheeled motor vehicles (KBM-R4) to almost 150 percent. ," said Coordinating Minister for Economic Affairs Airlangga Hartarto when opening the 2021 Gaikindo Indonesia International Auto Show (GIIAS) Exhibition, at the Indonesia Convention Exhibition (ICE), BSD, Thursday, November 11.

The government has decided to provide incentives for reducing PPnBM 100 percent for the purchase of KBM-R4 with an engine cylinder capacity of more than 1,500 cc until December 2021. As well as incentives for reducing PPnBM from 25 percent to 50 percent for KBM-R4 with an engine cylinder capacity of 1,501 cc to 2,500 cc. .

As a form of commitment in overcoming climate change problems, the Government accelerates the development of new renewable energy (EBT) infrastructure and the development of the electric vehicle industry/Battery-Based Electric Motorized Vehicle (KBL-BB) industry ecosystem by issuing a national automotive industry roadmap and roadmap for the development of the KBL-BB Industry.

To support the KBL-BB development policy, the Government has issued Government Regulation Number 74 of 2021 concerning Amendments to Government Regulation Number 73 of 2019 concerning PPnBM Motor Vehicles, which regulates the imposition of PPnBM tariffs, which are imposed based on the level of motor vehicle carbon emissions.

The implementation of the 2021 GIIAS Exhibition with the theme "Wheels to Move" will be a forum to support the growth of the automotive industry in Indonesia, so that it will immediately rise again after the COVID-19 pandemic, as well as an event to support the reduction of carbon emissions in motor vehicles.

"The government strongly supports the GIIAS 2021 Exhibition to encourage the recovery of Indonesia's national economy. Therefore, I congratulate and hope this event can run well and smoothly, and bring many benefits to the Indonesian economy," said Airlangga.

Coordinating Minister Airlangga also hoped that Indonesia could become self-sufficient in motor vehicles and technology by improving the quality of domestically produced products and boosting the value of automotive exports to accelerate economic growth after the pandemic.

The GIIAS 2021 Opening Ceremony was followed by a group visit to the automotive exhibition area at ICE BSD. This year's exhibition presents a number of the latest products from the 24 well-known participating vehicle brands, which are expected to be a sign of Indonesia's economic revival after the COVID-19 pandemic.

The event was also attended by Minister of Industry Agus Gumiwang Kartasasmita, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, General Chairperson of GAIKINDO Yohannes Nangoi, Tangerang Regent Ahmed Zaki Iskandar, and representatives from related Ministries/Agencies.