Friday, 20 May 2022 | 17:44 WIB

Car Sales in Indonesia Surge 227 Percent in April 2021

Car Sales in Indonesia Surge 227 Percent in April 2021 (antaranews)

JAKARTA, NETRALNEWS.COM - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto says sales of four-wheeled vehicles in April 2021 surged 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). In April, however, the sales skyrocketed by around 227 percent," Airlangga said at an online media gathering in Jakarta, on Wednesday (05/19/2021).

He said that by seeing this positive impact, the Indonesian government would continue the PPnBM incentive mechanism according to the predetermined scenario.

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

Furthermore, the Coordinating Minister for Economic Affairs said the government had also provided stimulus, such as the elimination or reduction of cost burdens for businesses, direct cash assistance for certain crew and employees, and vaccinations for transport workers and road transport 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 is already in progress, among others, is property, and then also related to the added value tax (PPN) borne by the government for the retail sector, for example, which is still under discussion," said Airlangga.

Moreover, the Indonesian 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, budget usage only reached IDR26.83 trillion, or the equivalent of 47.3 percent of the budget cap of IDR56.72 trillion.