JAKARTA (TheInsiderStories) - The Association of Indonesian Automotive producers (GAIKINDO) is optimistic that new car sales in this year could reached 750,000 units compared to last year only 578,327 units. The optimism came based on the government’ economic growth in this year the rising of public purchasing power.
“We hope that economic growth can continue to increase and we must be optimistic that the target will be achieved and always be realistic,” said the chairman, Jongkie D. Sugiarto, virtually on Tuesday (02/09).
The realization in 2020, fell by 44.55 percent compared to 2019 which reached 1.04 million units. To support the automotive industry, the government has prepared economic stimulus to limit the COVID-19 impact in this sector. This policy was made to maintain the performance of the industry’ contribution to the national economy.
The ministry of industry has proposed fiscal, non-fiscal, and monetary stimulus to the related ministry and agencies on the new policies. In detail, the fiscal stimulus is in the form of incentives income tax for six months, value added tax refunds also for six months, and a reduction in import duties.
Non-fiscal stimulus is given in the scheme of simplifying or reducing export and import for raw materials, accelerating the export-import process for reputable traders, and simplifying the import-export process through National Logistic Ecosystem. The stimulus inline with Financial Service Agency Regulation Number 11 of 2020 concerning the National Economic Stimulus as a Countercyclical Policy on the Impact of the Pandemic.
Related to the the second stimulus, minister of industry, Agus Gumiwang Kartasasmita, has proposed granting exemption from import duties on the automotive industry. Based on the minister letter, 593 tariff posts are proposed to be granted import exemptions divided into 27 sector groups.
As for the automotive industry sector, trailers and semitrailers, its proposed as many as 45 tariff posts with the April 2013 import prognosis of US$632,170 and a potential lost state of Rp924 billion ($57.75 million). The impact of the COVID-19 outbreak was greatly felt by the national automotive sector.
“The number of sales of four or more wheeled vehicles in January 2020 was 80,400units or decreased by 1.1 percent from the previous period, then in February 2020 it was 79,500 units or decreased by 3.1 percent from the previous period,” He said.
Another problem faced by the manufacturer, he continued, is the supply of raw materials and components, especially from countries that apply a lockdown policy. This makes the motor vehicle manufacturing industry forced to look for alternative sources of raw materials and components to maintain production.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
