The Ministry Of Industry Calls Three Types Of Hybrid Cars That Get 3 Percent PPnBM This Year

Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry Setia Diarta (second from the left). (Photo: Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) revealed that 3 percent of electric cars with hybrid or hybrid technology will receive Sales of Luxury Goods (PPNbM) incentives this year.

The Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry, Setia Diarta, said the types of hybrid cars include Plug-in Hybrid Electric Vehicle (PHEV), full hybrid and millid hybrid.

Through this convenience, it is hoped that the national automotive industry can be excited again in the midst of people's purchasing power which has decreased and the challenges of the market are increasingly complex this year.

In particular, after VAT becomes 12 percent and the tax opportunity applies.

"In order to maintain people's purchasing power, we at the Ministry of Industry are trying to propose incentives in the automotive sector so that it can be a trigger to provide economic growth," said Setia in an agenda entitled Prospects of the 2025 Automotive Industry and Incentive Opportunities from the Government at the Ministry of Industry Building, Jakarta, Tuesday, January 14.

"Incentives for PPNBM DTP (Government Borne) which will be given for hybrid vehicles, both PHEV, full and mid-hybrid by 3 percent," he continued.

In addition, the Ministry of Industry also proposes to reimpose VAT incentives for battery-based electric cars or battery electric vehicles (BEV) and buses by 10 percent like last year.

Thus, electric cars that have met certain Domestic Content Levels (TKDN) will only be subject to a VAT rate of 2 percent.

"We have also just received information, several provinces provide relief by delaying the implementation of opsen. It is hoped that this can grow, maintain conditions and maintain the competitiveness of the national automotive industry, both domestically and globally," he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto officially announced the provision of Sales Tax incentives on Government-borne Luxury Goods (PPnBM DTP) of 3 percent for hybrid cars.

"For the middle class, the government has resumed the DTP VAT for property and has also resumed the facilities for battery-based motorized vehicles or electric vehicles for the handover of four wheels based on TKDN," Airlangga said at a press conference on the Economic Stimulus Package for Welfare at the Coordinating Ministry for the Economy Office, Jakarta, Monday, December 16.

"Then related to the latest one is PPnBM DTP for hybrid motorized vehicles. Now, VAT for hybrid is the government provides a discount of 3 percent," he added.

In addition, Airlangga added, that the PPnBM policy and import duties for fully imported electric cars (completely built up/CBU) and decomposed (completely knock down/CKD) are still valid.

"Well, in accordance with the ongoing program, this is also an exemption from CBU EV import duties for certain wheels in full or CBU and certain four-wheeled CKD," he said.