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(KPL/VNA) Indonesia is planning to roll out incentives for cars with hybrid engines, said Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto.
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(KPL/VNA) Indonesia is planning to roll out incentives for cars with hybrid engines, said Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto.
Speaking at the 2024 GAIKINDO Indonesia International Auto Show (GIIAS) automotive exhibition in Tangerang, Banten, on July 24, Hartarto said that the Indonesian government is preparing incentive programmes.
He said that tax incentives for luxury goods could be a solution to overcome the sluggish auto market and thereby boost sales.
Currently, hybrid cars are subject to a sales tax on luxury goods (PPnBM) of 6 - 12%. Meanwhile, fully electric cars (battery electric vehicles/BEVs) enjoy various incentives, including zero PPnBM and Government-borne Value Added Tax (DTP) incentive.
Indonesia is offering a government-borne 10%-value-added tax for electric cars that meet a minimum domestic component level (TKDN) of 40%.
Previously, during the opening of GIIAS on July 18, Industry Minister Agus Gumiwang Kartasasmita said that his ministry will propose incentives for hybrid vehicles to the relevant ministries, particularly the Finance Ministry, so that they will calculate and discuss incentive options.
KPL