The news about tax changes from Sedan in Indonesia is actually not a new news, we ourselves had raised this problem some time ago. And it seems that the Ministry of Industry who became the originator of this thing itself can not wait to bring this proposal into the final round.
Yep, around September 2017 yesterday was actually a draft of the tax decrease Sedan itself has reached the Ministry of Finance. The Sales Tax Regulation on Luxury Goods (PPnBM) from the 30% sedan is required to be reviewed and lowered to the equivalent of other cars such as SUVs and MPVs which are only 10%. At that time the Ministry of Finance seems to be one obstacle to the realization of this, because the reduction of 20% of the tax Sedan obviously will reduce state revenues, because tax is one source of our country's income. But actually this trigger has a good purpose.
What good purpose? Kemenperin realize that one of the reasons for the weak sales of sedans in the country is the tax, whereas globally, the highest sales for cars held by the sedan segment. Of the 10 largest cars sold in the international market, 70% of them are sedans. As we know, there are Toyota Camry, Honda Civic and Hyundai Elantra which entered in the top 10 best-selling car in the world. But the condition is reversed in Indonesia, where in the top 10 best-selling car, none of the sedans are entrenched. The Ministry of Industry itself wants to increase the passion of sedan sales in the country with a review of taxes.
Quoted from Kompas automotive page, Minister of Industry, Airlangga Hartarto in its official broadcast on Sunday, February 11, 2018 said that the tax revision for Sedan is targeted to be completed in the first quarter of 2018, or specifically estimated in March 2018. According to Airlangga, this revision itself has taken quite a long time, because the draft has been proposed since last year so that it targets for this revision will be finalized. With a decrease in taxes, the sedan will not be considered a luxury anymore, and it is expected the producers will actively produce sedans, including for export markets.
Airlangga itself targets Australia as one of the destinations for sedan exports, where the kangaroo country has a good market share of sedans, but many manufacturers are closed due to various problems. We just observe how the continuation of the tax revision of this sedan, whether later the manufacturer in Indonesia will produce more sedans or not. What do you think?