This Is The Ministry Of Industry's Response To The Sustainability Of People's Cars Can Be Free Of PPnBM

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif. (Photo: Theresia Agatha/VOI)

The proposal regarding the abolition of the Sales Tax on Luxury Goods Borne by the Government (PPnBM DTP) for people's cars to the Minister of Finance (Menkeu) Sri Mulyani Indrawati still has not found a bright spot.

The people's car in question is the price is below Rp250 million.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said that Minister of Industry Agus Gumiwang Kartasasmita had indeed submitted the proposal to Minister of Finance Sri Mulyani at the end of 2021.

However, until now there has been no answer for the implementation of the proposal.

"We have actually submitted the proposal at the end of 2021 to the Ministry of Finance. However, at this time there is no progress and we are still in a waiting position," Febri said in an online press conference on Friday, March 8.

Febri said the proposal was to increase the ratio of car ownership in the country, which is known to be still low to date.

"I know that the current ratio of car ownership in Indonesia is still low compared to car ownership in other countries. Indonesia's current ratio is 96:1,000 or smaller than in Thailand at 270, Malaysia 400 for 1,000 residents," he said.

"Because we want the Indonesian people to have cars, at that time we encouraged the PPnBM DTP program," he continued.

In addition, the Ministry of Industry also encourages low-cost green car (LCGC) not to fall into the category of luxury goods.

So that it can be exempted from the Luxury Value Added Tax (PPnBM).

He assessed that his party only wants people to be able to own cars at affordable, environmentally friendly prices and is expected to increase the utilization of automotive industry production in Indonesia, especially if they have local components.

"We need to convey that the position of the Ministry of Industry is always fighting for our proposal to get the green light from the Ministry of Finance. Maybe it's good to ask the Ministry of Finance that a car price of Rp250 million is no longer included in the category of luxury goods and is subject to PPnBM," he said.

"Therefore, the minister said that cars under Rp250 million were no longer categorized as luxury goods. So, they were not subject to PPnBM taxes," he added.

Quoted from the Decree of the Minister of Industry Number 1737 of 2021 concerning Motorized Vehicles with PPNBM DTP, there are several cars that have the potential to meet the requirements of people's cars.

From that data, the local components of these cars have reached more than 80 percent.

Based on the attachment to the Ministerial Decree and recognition from brand-holding agents (APM), there are 10 cars that meet 80 percent local purchase at a price of IDR 240 million and 1,500 cc engine down according to the conditions of the 'people' car' from the Ministry of Industry.

The details of the people's car are:

1. Honda Brio Satya (Local Purchase 91 percent and prices ranging from Rp153,400,000.000 to Rp177,400,000.)

2. Toyota Agya (Local Purchase 85 percent with prices ranging from IDR 149,200,000 to IDR 170,690,000)

3. Toyota Calya (Local Purchase 85 percent with prices ranging from IDR 146,190,000 to IDR 167,490,000)

4. Daihatsu Ayla (Local Purchase 85 percent with prices ranging from IDR 105,300,000 to IDR 163,050,000)

5. Daihatsu Sigra (Local Purchase 85 percent with prices ranging from IDR 122,650,000 to IDR 165,400,000.)

6. Mitsubishi Xpander (Local Purchase 80 percent with a starting price of IDR 237,900,000)

7. Nissan Livina (Local Purchase 80 percent with a starting price of IDR 224,300,000)

8. Daihatsu Xenia (local components above 80 percent at a price of IDR 190,900,000-IDR 244,200,000)

9. Toyota Avanza (local components above 80 percent with prices starting at IDR 206,200,000).

10. Daihatsu Terios (local components above 80 percent, prices start at IDR 205,100,000).