Steep Luxury Tax May Drive Out Supercar Brands from Indonesia

TEMPO.CO, Jakarta - The 125 percent PPnBM luxury tax scheme currently imposed on vehicles registered as supercars are starting to drive out supercar brands from Indonesia due to the low sales added with the fluctuating nature of rupiah. 

This condition was explained by the president-director of the supercar and luxury exotics importer PT Prestige Image Motorcars, Rudy Salim. 

“Yes, that is true. It wouldn’t be favorable for me to mention specific brands. But it will reveal itself eventually,” said the president-director to Bisnis.com on Thursday, February 27.

He said that as long as the PPnBM scheme does not undergo a major overhaul, this segment’s market will continue to experience a sense of uneasiness. 

The 125 percent PPnBM that is currently imposed is overseen under the Finance Ministry’s Regulation No.35/2017 on motorized vehicles above 3,000 cc. 

“As long as the PPnBM is imposed as it currently is, there would be no room for supercars to grow [in Indonesia],” Rudy added. 

As the leader of one of Indonesia’s supercar importers, Rudy said that the company will focus on product diversification. Moving its focus from performance supercars to premium electric cars such as the Tesla and help educate the market on electric vehicles.

However, Rudy said that this will also meet its hurdles as prices of electric vehicles are not cheap and the infrastructure to support the operations of premium electric cars has yet been fully developed. 

BISNIS