JAKARTA - The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita revealed that based on the evaluation results, the government's policy of slowly relaxing the Luxury Goods Sales Tax (PPnBM) has shown encouraging results.
In his records, sales of the types of motorized vehicles stipulated in the regulation reached 167,774 units until the period of June 2021.
"This will certainly have a positive impact on the recovery of the automotive industry sector, which has a wide multiplier effect for other industrial sectors, so that in the end it will be able to jumpstart the national economy," he said at the 2021 Investor Daily Summit forum, Wednesday, July 14.
According to the Minister of Industry, currently there are 21 industrial companies of four-wheeled vehicles (R4) or more in Indonesia with an investment value of Rp. 71.35 trillion for a production capacity of 2.35 million units per year.
From these activities, this industry is able to absorb direct labor of 38,000 thousand people, as well as more than 1.5 million people who work along the industrial value chain.
"The automotive industry in the country is still one of the manufacturing sub-sectors that makes a brilliant contribution to the national industry," he said.
Furthermore, he also mentioned that the export of automotive products for four-wheeled motor vehicles or more, including components in the January-April 2021 period, was recorded at Rp29.88 trillion.
Of this amount, around Rp. 18.63 trillion, including exports of Completely Build Up (CBU) vehicles from Indonesia to more than 80 countries.
"The production performance of R4 or more motor vehicles for the period January to May 2021 was recorded at around 413,000 units, and sales (wholesales) of 320,000 units," he said.
To note, the automotive industry tax discount policy aims to encourage sales of domestically produced motor vehicles.
In its implementation, the government has provided relaxation of the Sales Tax on Government-Borrowed Luxury Goods (PPnBM-DTP) with a validity period of up to 31 December 2021 for R4 motorized vehicles with engine capacities of up to 2,500 CC.
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