Good News From Airlangga: Car Sales Jumped 227 Percent In April Effect Of PPnBM Incentives

Illustration. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said sales of four-wheeled vehicles in April 2021 jumped 227 percent (yoy) as a result of the implementation of PPnBM (Sales Tax on Luxury Goods) incentives.

"In March when it was implemented there was an increase of 28.85 percent (yoy), but in April there was an even bigger increase, namely around 227 percent," said Coordinating Minister Airlangga Airlangga as quoted by Antara, Wednesday, May 19.

Seeing this positive impact, said the Coordinating Minister for Airlangga, the government would continue the PPnBM incentive scheme according to the predetermined scenario.

The government provides PPnBM incentives with a 100 percent discount in March - May 2021, a 50 percent discount in June - August 2021, and a 25 percent discount in September - December 2021 for medium and 4x2 vehicles with segments up to 1,500 cc.

Furthermore, the Coordinating Minister for Airlangga said that the government had also provided stimulus such as the elimination or reduction of cost burdens for business actors, direct cash assistance for certain crew and employees and vaccinations for transport workers and road passengers.

In addition, the government is currently reviewing the appropriate stimulus to be given to other sectors such as the transportation sector and the property sector related to retail and hospitality.

"What has worked, among others, is property and then it is also related to PPN borne by the government for the retail sector, for example, it is still under discussion," said Airlangga.

The government also plans to extend tax incentives for businesses which will end in June. This is in line with the realization of budget absorption that has not been maximized. As of May 11, 2021, it was only Rp. 26.83 trillion or the equivalent of 47.3 percent of the budget ceiling of Rp. 56.72 trillion.