The policy to reduce the sales tax rate on luxury goods borne by the government (PPnBM DTP) for cars is starting to bear fruit with the increase in orders experienced by a number of domestic principals. It is hoped that this positive impact will accelerate efforts to recover the national economy due to the Covid-19 pandemic. "Since the issuance of this policy a few days ago, automotive companies have reported an increase in sales," said a spokesman for the Ministry of Industry, Febri Hendri in Jakarta, Saturday (13/3/2021).
Febri responded to the results of a telesurvee conducted by the KedaiKOPI Survey Institute regarding Perceptions of PPnBM Relaxation. The survey was conducted on 800 respondents and the results were 74.9 percent stated that the policy was fair and 77.6 percent agreed to the PPnBM relaxation. However, 99.2 percent of respondents said they would not buy a new car during the PPnBM relaxation period. "To measure the impact of PPnBM relaxation on people's purchases, we recommend using sales data or conducting a survey of car buyers since March 2021," he said.
In contrast to the results of the KedaiKOPI survey, several companies reported a sharp increase in sales since this policy was rolled out. Marketing Director of PT Toyota Astra Motor, Anton Jimmy, said that sales of Toyota cars that received PPnBM incentives experienced a significant increase. This can be seen from the total vehicle purchase letters (SPK) issued. "From March 1-8 2021 data, for Avanza, Sienta, Rush, and Yaris, the SPK increased by around 94-155 percent when compared to the SPK in February on the same date," he said. Meanwhile for Vios, which received the biggest discount of up to Rp. 65 million as a result of this incentive, sales increased even more because previously there was not much demand.
Anton said that his party had asked the factory to increase its production. "Now we are monitoring the condition of the stock, because it is not easy for the factory to increase production in a short time," he said. The increase in SPK also occurred in Honda car sales. Business Innovation and Sales Marketing for PT Honda Prospect Motor, Yusak Billy, revealed that sales increased by around 40-50 percent compared to the same period the previous month. "Especially for models that get tax incentives, the increase is up more than 60 percent compared to the first week of February, the highest growth is at HRV of 1.5 liters," he said.
Billy said public interest was very good in taking advantage of tax relaxation from the government. "We will continue to observe the development of car demand in the future to meet the existing demand," he added. Meanwhile, Daihatsu noted that the SPK increase occurred within a week when the tax incentives for the purchase of the new car came into effect. Not only the models that get this incentive, but also the models that do not get this incentive. For models that receive incentives such as Xenia, Terios, Luxio, and Gran Max MB, the SPK has jumped by about 40 percent. Meanwhile, other models such as Ayla, Sigra, Sirion, Gran Max PU, Gran Max Blindvan sales increased by about 20 percent. "For stock models that receive PPnBM incentives, especially in the months of the relaxation period, we will certainly set them as optimally as possible so that they are balanced between demand and supply," said Hendrayadi, Marketing and Customer Relations Division Head of PT Astra International Daihatsu Sales Operation.
Next, PT Mitsubishi Motors Krama Yudha Sales (MMKSI) revealed an increase in the number of orders, after the incentive for Sales Tax on Luxury Goods (PPnBM) was implemented starting Monday (1/3). There are two Mitsubishi products that have received PPnBM incentives, namely Xpander and Xpander Cross. "The number of SPK in the first week of March 2021 has increased quite significantly for Xpander, when compared to the same period in February 2021," said Irwan Kuncoro, Director of Sales & Marketing Division of MMKSI. Furthermore, PT Suzuki Indomobil Sales (SIS) claimed that during the four days of PPnBM relaxation, demand for Suzuki cars increased 100 percent compared to the same period in February 2021. "So far, from the data we have monitored, demand for Suzuki cars has increased 100 percent," said Donny. Ismi Saputra, 4W Marketing Director of PT SIS. Donny said that Suzuki has two models that get zero percent PPnBM relaxation. The two models are the Suzuki Ertiga and Suzuki XL7. "We estimate the sales increase for the two models is around 20 percent. But it could continue to grow," he said.
The Ministry of Industry is optimistic that the implementation of this policy will run well, be right on target, and benefit both consumers and the industrial sector. Since the relaxation was given in early March, there has been a significant spike in car sales. "The Ministry of Industry supports the automotive industry as well as vehicle distributors to carry out the function of appealing, controlling, and supervising dealers, so that vehicle price reductions can match expectations and meet consumer demand as best as possible," concluded Febri.
