After Ramadan And Eid, Car Sales Predicted To Increase Significantly

Illustration. (Photo: Doc. Antara)

JAKARTA - Executive Director of the Indonesian Center of Reform on Economics (CORE) Mohammad Faisal estimates that sales of four-wheeled vehicles in April and May will grow higher than March 2021 as a result of the expansion of PPnBM relaxation.

"We estimate that in April and May there will be an increase in motor vehicle sales by more than 11 percent," he said at the Breaking of Economic Recovery Inertia event in Jakarta, quoted from Antara, Tuesday, April 27.

Faisal explained that sales of four-wheeled motorized vehicles, which had contracted so far, had started to increase, namely around 11 percent in March 2021, even though the PPnBM relaxation at that time was only given to cars under 1,500 cc.

According to him, the recovery in sales of four-wheeled vehicles will accelerate even more in April and May in line with the government expanding its target of granting PPnBM relaxation to 2,500 cc cars.

"So it is enough to encourage the purchase of four-wheeled vehicles until the end of the year, even though the conditions before the pandemic were quite sluggish in the automotive industry," he said.

However, Faisal said this stimulus was not yet sustainable because the PPnBM relaxation was given gradually so that the increase in sales of four-wheeled vehicles would decrease in line with the decrease in the discount.

"This can indeed increase sales this year, but then when the discount period is over we estimate it will return to its original condition before the stimulus was given," he said.

Therefore, he suggested that the government could focus on providing stimulus to more sustainable sectors such as creating jobs and increasing labor-intensive activities.

This is done because it will be able to increase purchasing power as well as productivity so that the contribution to economic growth is also greater.

"If a stimulus is given for cash-intensive labor, the purchasing power will increase and unemployment can be absorbed. This is more sustainable in nature," he said.