Indonesia may have tax breaks for car purchases next year

Industry Newsletters1mos agoupdate PrintEnterprise

0 0

The Ministry of Industry has confirmed that it is in marathon discussions with the Indonesian Automotive Industry Association (IAIA) and all automobile manufacturers on incentives for the automotive industry with the aim of accelerating the recovery and strengthening of the domestic automotive industry by 2026.The industry is facing a tough situation in 2025 due to pressure on purchasing power in the domestic market and volatility in the global market. The Deputy Minister of Industry said that the discussion is not yet over and the results will beAnnounced after Christmas break this yearThe

The incentives are said to be proposed inTwo optionsThe government will choose one to implement, Option 1: Exemption from sales tax on luxury goods (PPnBM) 100% for internal combustion engine cars (ICE) with a selling price of less than 275 million dongs, Hybrid and pure electric vehicles (BEV) with a selling price of less than 375 million dongs, and commercial pickup trucks with a selling price of less than 275 million dongs.

BEV incentives are differentiated by battery type:Vehicles using NMC batteries are exempt from 1001 TP3T VAT (PPN), vehicles with LFP batteries receive a 50% incentive before levying a 6% PPN. Option 2: For ICEs, Hybrids, BEVs and commercial pickups in the above price ranges.Exemption 100% PPN; The battery incentive scheme for BEVs is consistent with option one.

# Industry News