Gaikindo: The End Of PPnBM Incentives Will Not Reduce Four-wheeled Vehicle Sales

Illustration. (Photo: Doc. Antara)

JAKARTA - The Association of Indonesian Automotive Industries (Gaikindo) assesses that the Luxury Goods Sales Tax (PPnBM) incentive policy which ended last September will not have an impact on the decline in vehicle sales. "The impact is not (affected to the decline in sales)," said General Secretary Gaikindo Kukuh Kumara, quoted from Antara, Tuesday, October 11. Kukuh said this optimism rose as the number of new vehicle sales continued. Last September, sales of four-wheeled vehicles in Indonesia reached nearly 100 thousand units. According to him, this shows that market demand for vehicles is still good even though the PPnBM incentive policy is slowly being removed. "Yes, the purchasing power is quite affordable, so the demand is still good," he said. Meanwhile, automotive observers from the Bandung Institute of Technology (ITB) Yannes Pasaribu see the end of the PPnBM incentive policy, more or less, will still have an impact on the decline in vehicle sales. With the removal of the subsidy, the price of the vehicle will rise again. According to him, the public will prefer to postpone the purchase of new cars until their funds are sufficient. "The higher the price of the car, the lower the market demand. Generally, people respond to price increases by delaying the purchase of new cars for another time, until their funds are sufficient to buy the model they want," Yannes said.