The Minister of Industry of the Republic of Indonesia, Agus Gumiwang, said that the government is now considering extending the 100 percent PPnBM incentive.
According to him, this can happen because the 100 percent PPnBM incentive is able to have a positive impact on automotive sales and production in the country.
"One thing I would like to say too, earlier the president said that the PPnBM program which ends in December 2021 could be evaluated or continued by the government," said Agus, Wednesday (17/11/2021).
Agus explained, although the government has to spend money to bear the PPnBM tax incentive, but on the other hand the government also gets more income.
"We can see because there is a cost benefit, the luxury tax government is reduced, but there are benefits elsewhere. If we calculate it, the benefit is 6 times. That is from the supporting industry, tier 1, tier 2, IKM (Small and Medium Industry)," he said.
"So the sales tax may be evaluated. We will see later, because the most important thing we see is the benefit. If it can bring much higher benefits, we will evaluate it," he continued.
Agus also emphasized that the automotive industry is one of the sectors that the government relies on to revive the country's economy.
"If you remember, the two sectors that we are targeting for economic rebound are automotive and property, because these two sectors have a lot of supporting industries," said Agus.
For information, the 100 percent PPnBM incentive was originally given by the government in March-May 2021.
Because it is considered effective, this 100 percent STLG incentive has been extended until August 2021.
For the same reason, the government has again extended the 100 percent PPnBM incentive until December 2021.
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