Government Prepares Exports Regulation of Sedan Car

By : Ridwan And Aldi Firhand. A | Saturday, August 12 2017 - 08:08 IWST

Minister of Industry, Airlangga Hartanto
Minister of Industry, Airlangga Hartanto

INDUSTRY.co.id - Tangerang, the Ministry of Industry is proposing to the Ministry of Finance regarding the new regulation of tax schemes for sedan type vehicles so as to increase unit sales.

As is known, the current tax sedan car is higher when compared with other models such as sport utility vehicle (SUV) and multi purpose vehicle (MPV).

"With the new sedan tax scheme, we expect the potential for sedan car exports to increase as international demand for sedans is higher than the MPV and SUV," said Minister of Industry, Tangerang (11/8/2017).

He added that the strategic policy will also encourage the strengthening of vehicle industry structure in the country. In addition, it is expected to pursue the volume and value of car exports achieved by neighboring countries as the main competitors, namely Thailand.

"Therefore, the government spur the national automotive industry to be able to export cars of 200 thousand units this year," he said.

Airlangga assess Indonesia has become a net exporter from the automotive industry sector. Moreover, this industry is one of the sectors that become the benchmark in the national economic growth. "Now our automotive production is increasing, which proves people's purchasing power is still powerful
This is still growing and our economy is also still awake at the level of five percent. So, it means that Indonesia's economy is still strong, "he explained.

The same thing was conveyed by Vice President Jusuf Kalla, that the growth of car sales can indicate the income of the middle class does not go down. In addition, an increase in car sales can also be boosted from the launch of the latest models. "So, GIIAS event not only improving Sales in the country, but can target the export market, "he said.

Based on data from Gaikindo, domestic car sales until June 2017 reached 533,537 units or up 0.3 percent. Projected in 2017 car sales could reach 1.1 million units. Meanwhile, for export in June 2017 reached 113,269 units or up 20.5 percent. Then, the national automotive industry also improves its performance by increasing its production capacity to 2.2 million units per year.

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