Good News, Motor Vehicles Will Get PPnBM Discounts!


The Ministry of Industry is preparing technical regulations related to several car models that can obtain incentives for the Sales Tax on Luxury Goods Borne by the Government (PPnBM DTP) in 2022.

The news appeared related to the issuance of PMK No. 5/2022 regarding PPnBM DTP. The goal is that this incentive can be a stimulus for national economic recovery. This technical regulation will take the form of a Decree of the Minister of Industry (Kemenperin), similar to the PPnBM DTP facilitation mechanism for motorized vehicles last year.

A spokesman for the Ministry of Industry, Febri Hendri, confirmed that the technical rules had been prepared as a guide for the realization of the PPnBM DTP policy. “Based on PMK 5 of 2022, the determination of the types of vehicles, both LCGC and Non-LCGC, will be determined through a Decree of the Minister of Industry,” he told Bisnis, Friday (11/2/2022).

The regulation, according to him, has been finalized and is just waiting for approval from the Minister.

Although the regulation regarding PPnBM DTP incentives is almost final, industry players are still waiting for the technical reference. With a technical reference, they will know which car models are eligible for incentives.

Business Innovation and Sales & Marketing Director of PT Honda Prospect Motor Yusak Billy emphasized that he and the automotive industry players are very happy with this policy. He thinks this policy will boost the economy in the automotive sector.

“We are waiting for the official list to be issued by the relevant government regarding the cars included in this relaxation program,” he added.

Based on the PPnBM DTP policy for motorized vehicles issued by the government, incentives will be given to two car segments, namely LCGC and non-LCGC engine capacity of 1,500cc below the price of Rp. 250 million-plus 80 percent local purchase content.

Incentive periods for LCGC are given in the first, second, and third quarters of 2022. Incentives are given in the form of discounts on PPnBM of 100%, 66.66%, and 33.33% so that PPnBM paid in the first quarter is only 0%, in the second quarter 1% and the third quarter 2%.

The second segment is a vehicle with an engine capacity of up to 1500 cc with a price of Rp. 200 – 250 million which is given a 50% discount on PPnBM in the first quarter. This makes consumers pay PPnBM rates of only 7.5%.