Production of Sedans Accelerated to Reach Export Target
25 November 2014 15:04 WIB
TEMPO.CO, Jakarta - Head of Automotive Industry Association (Gaikindo) Jongkie Sugiarto said that the production of sedan below 1500cc should be accelerated. Jongkie said that it is an important effort to increase automotive export target.
“The majority of national production cars are minibuses or MPVs, but export demands are sedans,” Jongkie told Tempo on Monday, Nov 24.
However, factories are not to discontinue minibus or other types of vehicles in order to pursue the domestic market. The most important thing to do to increase sedan production and other vehicle type, Jongkie said, is by lowering its price value through the reduction of sales tax on luxury goods (PPnBM).
Currently, PPnBM for small cars reaches 30 percent, whereas MPVs having the same engine capacity only has a 10 percent tax. If PPnBM for sedan is equalised to other vehicle types, sedan markets are likely to grow. “Including to increase export sales.” Gaikindo data recorded small sedans (with engine capacity below 1500cc) on January to October 2014 reaching of 28,128 units.
TRI SUSANTO SETIAWAN
