Gaikindo Expects Car Sales Next Year To Reach One Million Units, Pay If PPPN 12 Percent Applies

The atmosphere of the 2024 GJAW auto show. (Photo: Afrizal / VOI)

JAKARTA - The Association of Indonesian Automotive Industries (GAIKINDO) through General Secretary Kukuh Kumara, hopes that next year's car sales target can reach one million units.

However, there is a note to achieve this target, namely if the government does not impose an 11 percent increase in value added tax (VAT) to 12 percent starting January 2025.

"For example, next year there will be no option, then VAT does not exist, it can reach 900 thousand to one million, we hope it can be achieved at that number," he said, in a discussion on the theme of the automotive FGD: ending a one million trap, welcoming the low emission era, which was held by Viva in the Kuningan area, Jakarta, Wednesday, December 4 evening.

Indeed, previously, Minister of Finance Sri Mulyani Indrawati had stated that there would be an increase in VAT rates to 12 percent, and would take place from January 2025.

Kukuh Kumara revealed that currently Gaikindo is still waiting for the government's certainty regarding the VAT. If there is an increase, of course there will be an evaluation.

"We'll just have to wait. But in January with the implementation of various kinds of policies, we will evaluate it," added Kukuh.

He further said that the country's automotive market has now shown indications of recovery. This can be seen from the enthusiasm of the community for new vehicles, as well as the increasing trend of ordering during the automotive exhibition.

On the same occasion, Cyrillus Harinowo Senior Economist and Commissioner of BCA said that the auto industry is still experiencing very bright growth despite stagnation in the sale of one million units of vehicles.

"Indonesia is compared to G20 countries, experiencing economic growth which is still high compared to India and Singapore. So, if we look at the automotive industry, it has still very bright growth, especially with green energy, such as the existence of electric vehicles," said Cyrillus Harinowo.

Kukuh Kumara continued that he hoped that there would be other alternatives presented by the government, because the implementation of the new VAT provisions could present its own challenges.

"Hopefully there will be other alternatives, whether it's a stimulus, is it an incentive so that we remain optimistic," concluded Kukuh.