DAPURPACUID – The government has officially launched an incentive in the form of a sales tax discount on government-borne luxury goods (PPnBM DTP) for hybrid cars of 3 percent.
Through the Ministry of Industry (Kemenperin) it then provides details about what kind of hybrid technology gets PPnBM DTP incentives.
However, in many responses the incentives given were considered insufficient, where the Government could provide additional incentives in the form of PPnBM discounts for locally assembled 4×2 cars.
Then, tax discounts for first-time buyers, as well as incentives for manufacturers who carry out localization and research and development (R&D) activities.
As explained by the Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry (ILMATE) of the Ministry of Industry, Setia Diarta, this incentive applies to Plug-in Hybrid Electric Vehicle (PHEV), full hybrid and mild hybrid vehicles.
“Several proposals for PPnBM DTP incentives for hybrid vehicles are 3 percent,” he said during a discussion on the 2025 Automotive Industry Prospects and Incentive Opportunities from the Government, which was held by the Industrial Journalists Forum (Forwin) in Jakarta, last Tuesday (14/1).
Apart from that, continued Setia, incentives are also given for EV vehicles of 10% to encourage the electric vehicle industry. Including postponing/easing the implementation of the PKB and BBNKB opportunities.
Setia said that through this incentive it is hoped that the national automotive industry can become enthusiastic again amidst people’s declining purchasing power and market challenges this year.
In particular, after VAT becomes 12 percent and the tax option comes into effect starting this year. As is known, the automotive industry last year (2024) experienced a contraction of 16.2 percent.
This decline was caused by weakening people’s purchasing power, as well as an increase in interest rates on motor vehicle loans. The automotive industry, he said, is expected to face greater challenges this year.
As one of the sectors that has a significant contribution to GDP, he emphasized that the automotive industry recorded an estimated decline of IDR 4.21 trillion in 2024.
This condition clearly has an impact on the backward linkage sector amounting to IDR 4.11 trillion, as well as the forward linkage sector amounting to IDR 3.519 trillion.
“Realizing the importance of the automotive sector for Indonesia’s economic contribution and the challenges faced in 2025, the Ministry of Industry is actively submitting proposals for incentives and policy relaxation to relevant stakeholders,” said Setia.
“To maintain people’s purchasing power, the Ministry of Industry is trying to propose incentives in the automotive sector so that they can be a trigger to provide economic growth,” added Setia.
Not only that, the Government can provide support to the manufacturing sector and slow down deindustrialization, extending motor vehicle credit tenors to 7-8 years which can increase consumer purchasing power.
With this scheme, the minimum income required to take out a car loan is around 19-25 percent lower, compared to a five-year term.
Apart from that, the government can help increase national car exports in complete form (CBU), by establishing free trade cooperation (FTA) with several countries.
And no less important is maintaining, even strengthening the middle class, which is claimed to be the lifeblood of the national economy as well as consumers of new cars.
On the other hand, state and regional revenues are also guaranteed not to decrease when fiscal incentives are released. This is because there is a large additional sales volume, which can increase the collection of corporate and individual income tax. (dpid/TH)
Source: dapurpacu.id
