Indonesia automotive sector to stay afloat with extension of tax relaxation, says GlobalData

Indonesia automotive sector to stay afloat with extension of tax relaxation, says GlobalData

27.05.2021: Following the news that The Ministry of Industry Indonesia plans to extend the validity period of the purchase tax relaxation policy on luxury goods (PPnBM) until 2022;


Following the news that The Ministry of Industry Indonesia plans to extend the validity period of the purchase tax relaxation policy on luxury goods (PPnBM) until 2022;




 

Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:

“The temporary waiving off sales tax on motor vehicles (PPnBM) created the expected upthrust for the Indonesian automotive industry, one of the worst-hit by the COVID-19 pandemic in the ASEAN region. The year 2020 saw sales reeling down to half the level of 2019 volumes both due to the pandemic and the weak private consumption because of sluggish economic growth.


 
“The government agreed tax exemption for 9 months starting from March 2021 and had positive impact on the domestic sales, which in the first month post-implementation grew by 28.85% while that in April rose by 227% over same period previous year.



The extension, if approved, will revive the automotive sector and subsequently drive the economic recovery of Indonesia. While extension will be a plus for the auto OEMs, component manufacturers and related industries, government will incur additional revenue loss and thus needs to make a clear prioritization. Sales tax on vehicles in Indonesia varies between 10% to 125% of the vehicle price, depending upon the type of the vehicle.



“It is evident that the government’s earlier stimulus package and measures such as subsidising car loan to boost vehicle demand largely proved to be inadequate and the tax relaxation turned out to be right ingredient for demand boost. According to Gaikindo, retail sales between January-April 2021 grew by 5.9% year-on-year and that the monthly sales volume now stands close to pre-COVID levels of 80,000 per month.



The extension will also give a breathing period to OEMs, who have been combating supply chain disruptions due to pandemic and chip shortages and will give sufficient time to ramp up supply to match it with growing demand.”



GlobalData

Permanent-URL: http://www.automobilsport.com/indonesia-automotive-sector-afloat-extension-tax-relaxation-globaldata---224068.html

27.05.2021 / MaP

More News

Bentayga S - The most sporting of Bentaygas
27.05.2021
    New Bentayga S model delivers heightened agility and presence       Unique Sport suspension calibration for greater dynamic ability    Muscular design cues reflect truly sporting driv more >>
Dometic acquires Zamp Solar
27.05.2021
On May 26,  2021, Dometic completed the acquisition of Zamp Solar, a leading North American manufacturer of innovative and high-quality mobile solar power solutions for the outdoor market.   more >>
Manthey-Racing becomes Manthey – a new brand identity for the prestigious company
27.05.2021
Since 1996, Manthey-Racing has been one of the leading players in the world of performance cars for road and racing. After 25 successful years on the national and international stage, it is time for us to pause and take this opportunity to bring all the diff more >>
H.E.R. Expresses Vibrant Personality in Custom-Designed Honda Civic Type R
26.05.2021
    2021 Civic Tour headliner H.E.R. gets creative from the inside-out with Civic Type R design    H.E.R. applies a deep black matte finish outside and special LED lighting effects inside    ‘Remix’ of virtual 2021 Honda Civic Tour to be announced in the coming weeks more >>
UNLOCK ANY ROAD JAPAN” Lamborghini Urus expedition over 6.500 Km across Japan
25.05.2021
Automobili Lamborghini Japan launched the cross-Japan project UNLOCK ANY ROAD JAPAN: a route of more than 6,500 km aboard the Super SUV Urus, which started 26 April from Fukoka, taking in 17 different stages before ending 23 May in Tokyo.   The relay-s more >>
Rolls-Royce Motor Cars announces Anders Warming as new Design Director
25.05.2021
Rolls-Royce Motor Cars has today announced that Anders Warming has been appointed Director of Design. He will join the company from 1 July. Warming, 48, joins Rolls-Roy more >>
Used car market to recover faster than new sales post COVID-19 second wave unlock in India, says GlobalData
25.05.2021
Following the news that Maruti Suzuki India registered a drop in sales of pre-owned cars by around 36% last fiscal year and that other OEMs also witnessed decline in used car business;Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading d more >>
Alpine A110's biggest fan
25.05.2021
Aerodynamics engineering is fundamental to the development of a high-performance sports car like the Alpine A110. The benchmark for this discipline is found in Formula 1, where wind tunnel testing has reached the highest levels of technical complexity. P more >>
The Audi e-tron S line black edition
25.05.2021
Progressive and sporty into the new model year    Wheels, Singleframe and side mirrors in black        Sustainable microfiber material in the interior, stitching and seatbelts in orange &nbs more >>
Hagerty partners with legendary Ace Cafe, London
25.05.2021
    Hagerty partners with renowned Ace Cafe, London as its exclusive insurance partner    Historic biker cafe opened over 80 years ago, closing in 1969 for almost 30 years, before being reopened in 1997 &nbs more >>
Genesis GV80 joins Dubai Police fleet of luxury patrols
24.05.2021
The Dubai Police General Command has added to its fleet of luxury patrol cars, the first SUV from Genesis brand, GV80 2021, from the exclusive distributor of Genesis in the UAE Juma Al Majid Est.Brigadier Dr Mohammad Al Razooqi, Director of Transport more >>
Inside the new World of Luxury - Rolls-Royce presents first film of new showroom visual identity
24.05.2021
Rolls-Royce has debuted a film showcasing its new and highly contemporary visual identity. This bespoke showroom aesthetic was launched at the marque’s flagship, Rolls-Royce Motor Cars London, then Rolls-Royce Motor Cars Shanghai Puxi before a global rollout across the brand’s network of 131 showrooms in 40 countries worldwide. more >>
Goodyear underscores commitment to corporate responsibility in 2020 report
24.05.2021
The Goodyear Tire & Rubber Company today released its annual report on corporate responsibility performance. Despite the challenges from the ongoing COVID-19 pandemic, the report summarizes the Company’s actions in 2020 that demonstrate its continued commitment to ethical and sustainable processes, materials and programs. more >>
SKODA AUTO is fully committed to diversity and inclusion
24.05.2021
– both in everyday life and in the workplace   › Diversity and different cultural backgrounds are a source of inspiration, creativity and strength› The Czech car manufacturer supports diversity and inclusion in all areas of its business› ŠKODA AUTO is a member of the Pride B more >>
ALPINE A110 X Felipe Pantone
22.05.2021
• The Argentinian artist designs unique works of art with the Alpine A110;• An exceptional paint job on the body, in the purest Felipe Pantone spirit;• Only three out of four copies manufactured will be available for sale. It more >>
Building a regional leader in sustainable mobility Appointment of the Stellantis Executive Team in Middle East and Africa
22.05.2021
Stellantis Middle East and Africa is establishing its new organization with the appointment of the new Regional Executive Team. A diverse leadership team engaged to position Stellantis as a great place to work and a first port of call in Middle East and Africa. more >>
Nico Rosberg is new Continental Brand Ambassador
22.05.2021
•    The Formula 1 World Champion signs up as Brand Ambassador for Continental•    Tire manufacturer committed to safety, top performance and sustainability•    Continental and Nico Rosberg support Extreme E race series more >>
Limited-edition Ford Mustang Mach 1 Set to Blast into South Africa
22.05.2021
•    Exclusive status and proud heritage of Mustang Mach 1 brought to life with new limited-edition model – only 90 units allocated for South Africa•    Specially calibrated 5.0-litre V8 engine develops 338kW of power and 529Nm of torque, available with six-speed manual transmission from the Shelby GT350, or 10-speed more >>
SK Innovation to support Ford electrification goals with BlueOvalSK joint venture, says GlobalData
21.05.2021
Following the news that South Korean battery maker SK Innovation and Ford Motor have signed a MoU to form EV battery joint venture BlueOvalSK to manufacture battery cells and arrays in the US;Bakar Sadik Agwan, Senior Automotive Consulting Analyst at more >>
CUPRA teams up with Valentino Rossi’s VR46 Riders Academy
21.05.2021
    The two brands bring together their competitive spirit and the passion for motorsport for the next three years    CUPRA strengthens its commitment to the new generation of young talents    The Academy’s riders sit behind the wheel of the CUPRA Formentor more >>
Highly Anticipated 2021 Acura TLX Type S To Arrive at Dealerships Mid-June
21.05.2021
    Acura’s best-performing sedan yet goes on sale June 23 with a starting price of $52,3001       Pre-sale activities begin today with Type S microsite launch, Build & Price and dealer reserv more >>
CUPRA Born launch marks the start of a new era for the brand - livestream
21.05.2021
    CUPRA Born is the perfect match between electrification and performance    The World Premiere will be broadcast on YouTube Live at 11:00 BST 25 May 2021    All-electric Born launched alongside Primavera Sound Barcelona 2022 line-up more >>
Renault Captur range enhanced with new R.S. Line and SE Limited specifications
20.05.2021
    New R.S. Line and SE Limited versions join existing Play, Iconic and S Edition Captur models    The Captur range gets a sporting edge with the addition of dynamic new R.S. Line version    Inspired by motorsport, the new R.S. Line trim level boasts a range of sporty exterior and interior enhancements&nbs more >>
Daimler Trucks begins rigorous testing of its fuel−cell truck
20.05.2021
    First enhanced prototype of the Mercedes-Benz GenH2 Truck on the test track since late April       Wide range of tests are a further milestone on the path to series production & more >>
JAC Motors’ global JAC DAY celebrates a brighter future
20.05.2021
JAC Motors has introduced a new global brand initiative called JAC DAY. This event aims to mobilise the JAC family worldwide for specific causes and will happen on 20 May every year, supporting a particular theme.More than 120 countries where the JAC Moto more >>
Kia America Debuts in US. New Name replaces Kia Motors America
19.05.2021
...as part of Kia Corporation Global Brand Strategy   Move based on Kia Corporation global brand strategy ushers new era for Kia in America; signifies evolving brand and EV strategy for fast-growing automaker    K more >>
New Goodyear Assurance ComfortDrive tires provide smooth ride for summer travelers
19.05.2021
It’s the return of the great American road trip for many people, with 73 percent of drivers indicating that they plan to take a road trip this summer.* To give drivers a comfortable ride as they embark on their adventures, The Goodyear Tire & Rubber Company is introducing the new Goodyear Assurance ComfortDrive. more >>
A day with Marc ter Stegen and his Cupra Formentor e-hybrid
19.05.2021
    The FC Barcelona player drives his new plug-in hybrid car for the first time and talks about his impressions at the wheel    He uses his driving time on his way to a match to concentrate and to talk with his family on the way home    Driving emission-free is in addition to other sustainable action more >>
Lamborghini announces its roadmap for electrification: “Direzione Cor Tauri”
19.05.2021
A landmark transformation plan for Lamborghini’s sustainability path: from product electrification to the Sant’Agata Bolognese site    Top product performance: the absolu more >>
Two of the UK’s leading mobility companies agree partnership to transform the sharing economy
19.05.2021
    YourParkingSpace.co.uk and hiyacar announce ground-breaking partnership    New agreement highlights the money-making opportunity available to savvy driveway owners and vehicle owners    Both companies are at the forefront of the sharing economy, specifically the exchange of services and goods betw more >>
The steering philosophy at Audi - Effortless, precise, controlled
18.05.2021
   New generation of steering wheels with touch screens and capacitive grip recognition        Steering assistance functions for added safety and increased comfort        Focus on sportiness and manageability – in the technology as well as the design more >>
McLaren Special Operations recreates legendary Gulf livery for 720S
18.05.2021
...to celebrate two iconic brands and personalisation possibilities    McLaren Automotive’s in-house personalisation arm, MSO, creates a bespoke 720S in the iconic Gulf Oil International racing colours    more >>
MANSORY refines the Bentley Bentayga into the ultimate luxury SUV
18.05.2021
"MANSORY Bentayga Wide Body MY2021"   •    Complete vehicle conversion (wide body)•    Full carbon bonnet with additional air outlets•    All ca more >>
Glickenhaus and Forzo Team Up!
17.05.2021
In endurance racing, every second counts, and so does keeping an eye on the full day – and night. Glickenhaus loves sharing these adventures and behind-the-scenes details with our fans. This is why FORZO and Glickenhaus have teamed up to create a more >>
What will the CUPRA Born look like? 5 key features
17.05.2021
    CUPRA Design Director Jorge Diez previews the distinctive features of the new CUPRA Born    The never-before-seen rear end features a horizontal light signature and diffuser for greater dynamism and efficiency more >>
SEAT S.A. launches diversity manifesto and affirms belief in strength through difference
14.05.2021
    “Diversity Takes Us Further” is a set of principles that writes diversity and inclusion into SEAT S.A’s corporate DNA and shows a step forward in the company’s commitment    SEAT S.A. is made up of four generations of employees, with 67 nationalities and 26 languages; 21% are women, and an estimated 7% of more >>
2021 Acura TLX Type S to Make Public Debut at the Acura Sports Car Challenge IMSA Race at Mid-Ohio
14.05.2021
    Highly anticipated TLX Type S to make public debut at the Mid-Ohio Sports Car Course as the official pace car for the Acura Sports Car Challenge Presented by the TLX Type S    IMSA Champion, three-time Indianapolis 500 winner Helio Castroneves to serve as Grand Marshall for Sunday’s endurance racing contest  more >>
The mayors of Barcelona and Milan strengthen ties at CASA SEAT
13.05.2021
    From 17 May to 12 June, Milan will be in the spotlight at Guest Cities, a conference in collaboration with the Italian General Consulate in Barcelona and its "Futura" project       Participants will in more >>
Sauber Engineering brings the racing spirit to the road with Alfa Romeo Giulia GTA
13.05.2021
    Sauber Engineering is bringing the know-how and experience of five decades of motorsport to the road with the new Alfa Romeo Giulia GTA and its extreme version, the GTAm, which have been unveiled to the international press during a special media event at the Balocco Proving Ground (VC), Italy, yesterday. more >>
2001-2021 copyright automobilsport.com