Government Considers Tax Incentives For National Automotive Industry

Minister of Finance Purbaya Yudhi Sadive (between)

Minister of Finance Purbaya Yudhi Sadive said that the government is also considering providing special tax incentives to the national automotive sector.

Meanwhile, this is in line with President Prabowo Subianto's plan to build a national car factory, with the target of producing cars made in Indonesia within the next three years.

"(Will there be a special incentive for the national automotive industry?) We'll see," he told the media crew, Tuesday, October 22.

In addition, Purbaya added that the government would first review the extent of the readiness of the national automotive industry.

Furthermore, he also explained that this year, the government has allocated a budget for the procurement of official vehicles for the Minister and Deputy Minister, using a domestically made car, namely Maung produced by PT Pindad.

Purbaya added that because the production capacity had not been able to meet the demands set, some of the budget had finally been returned.

"Only the production capacity is not enough to serve the previously prepared demand design, so that part of the budget is returned, but for next year, if they are ready, we will buy it," he explained.

Previously, President Prabowo Subianto revealed the government's plan to build a national car factory, with the target of producing cars made in Indonesia within the next three years.

As for now, Prabowo himself has used a Maung car made by PT Pindad as the official vehicle for the President of the Republic of Indonesia.

In the Plenary Cabinet Session at the State Palace, Monday, October 20, Prabowo said that all members of the Red and White Cabinet would also be asked to switch to domestically produced vehicles, one of which was Maung's car. One of them is Maung's car which has been used by a number of high-ranking TNI officials and officers.

"Soon all of you will also have to use Maung, I don't want to know. A good car is used on vacation. Or when I don't call you you can use the car," Prabowo said at the Plenary Cabinet Session, at the State Palace, Monday, October 20.

Prabowo had told me that he recently returned to using Alphard's luxury car. Despite acknowledging the convenience of the car, he realized the importance of providing examples of using local products.

"I left yesterday, I want to incognito, I haven't used Alphard for a long time. It's good too. But Prabowo's Eits remembers that you are the President of the Republic of Indonesia, you have to give an example. Yes, you will continue to use it," he said.

Furthermore, Prabowo said that he had prepared funds and land for the construction of a national car factory and a special team is currently working on realizing the project.

"This is not yet an achievement, but we have started to getrintis. We will have a car made in Indonesia in the next 3 years," he said.

Prabowo added that the success of producing cars itself will reduce dependence on imports, as well as strengthen the national automotive industry based on domestic capabilities.