Jakarta –
Minister of Industry Agus Gumiwang Kartasasmita revealed the good news about incentives for hybrid cars. His party has proposed a stimulus in the form of incentives. If everything goes smoothly, the rules will be out next year at the earliest.
“Incentives for hybrids are also one that we have proposed and will be discussed in the near future, later coordinated by the Coordinating Ministry for Economic Affairs (Coordinating Ministry for Economic Affairs). We have prepared them, not only for EVs (electric vehicles) but also for hybrids,” said Agus in ICE BSD, Tangerang, Banten, Friday (22/11/2024).
He added that this incentive design was a step by the previous government to implement the Sales Tax program on Government-Borne Luxury Goods (PPnBM DTP) during the COVID-19 pandemic.
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“What the incentives are like, it could be PPnBM DTP, and so on. What the amount is, please don’t ask now. Because it is still being discussed internally by the government,” explained Agus.
“If we have an agreement with the government internally, I think this route can be implemented really effectively early next year (early next year),” he explained.
Not without reason, Agus said that the Indonesian Automotive Industry Association (Gaikindo) had revised its target from more than 1 million units to 850 thousand units. The reduction in the year’s sales target of around 300,000 units caused Indonesia to lose around IDR 10.6 trillion.
This decline has had quite an impact on the automotive sector backward dan forward linkages involving 1.5 million people.
“This sector plays an important role in the Indonesian economy, especially in its contribution to Gross Domestic Product (GDP), especially the manufacturing sector,” he said.
Gaikindo responded positively to this news. The potential for hybrid cars in Indonesia can still be further boosted through the presence of incentives.
“If we focus on just one type of technology, it is very dangerous, because we don’t know who will become it in the future leaderhis,” said Nangoi on a separate occasion.
“We said that currently hybrid cars are growing quite rapidly in Indonesia. Therefore we are looking at not letting hybrid manufacturers move their factories or allocate their factories in Indonesia. So hybrid incentives, whether ICE or electric, are equally important for us,” he explained again.
“The impact of this revised target is extraordinary, the Minister has said that the impact will be extraordinary by 250 thousand (units). Therefore, we are trying to stop it from dropping too much,” said Nangoi.
“We say that more stimuli are needed. The Minister said earlier, hopefully at the beginning of next year several new stimuli can be implemented immediately,” he added.
(admin/rgr)
Jakarta’s Hybrid Car Incentives: A Comedy of Errors?
Ah, Jakarta! A city where the traffic is as tangled as your last relationship, and now they’ve thrown in a shiny new incentive scheme for hybrid cars! If only navigating the streets were as smooth as navigating government regulations.
Our star for the day, Minister of Industry Agus Gumiwang Kartasasmita, has shared a delightful morsel of news about incentives for hybrid cars. Teehee! Who knew cars could get praised like a child with a new set of crayons? The incentives are reportedly a “stimulus,” which sounds a bit like what my over-caffeinated uncle tries when he decides to dance at family parties.
Now, hold your horses, because if you’re expecting these golden rules to be handed down like precious relics anytime soon, think again! Agus hinted they could see the light of day as early as next year. That’s right, folks! A whole year of anticipation like waiting for your favourite series to come back from hiatus—only this time, it’s about cars. Don’t text your dealer just yet!
And let’s not forget the presence of the Coordinating Ministry for Economic Affairs—it sounds so important, it almost makes you wish you had a ministry of your own. It could be called the Ministry of Sassy Comments, and my first act would be to call out that “sales tax program on government-borne luxury goods” like it was an episode of “Who Wants to Be a Millionaire?”
Agus further revealed that these talks are no idle chat but rather a step from our previous government during the pandemic. So, big news for hybrid cars, not just another dreary episode of government bureaucracy—unless, of course, you ask what the actual incentives will be. “Please don’t ask that now,” he says, which sounds suspiciously like something I might say when caught in a web of my own lies.
To add a sprinkle of drama, the nation’s Automotive Industry Association (Gaikindo) seems to be flipping targets like pancakes on a Sunday. Originally aiming for over 1 million units, they’ve now dialed it back to a modest 850,000 units. It’s like saying, “Well, I was going to run a marathon, but how about a brisk walk instead?” That’s a loss of around IDR 10.6 trillion. Ouch! My wallet just flinched!
Now, if you’re wondering how this affects the 1.5 million smog-choking souls linked to this glorious industry, I’ll just say—higher stakes than your average soap opera! Why is this sector so vital? Well, according to Agus, it’s pivotal for the Indonesian economy, especially in terms of GDP contributions—fancy talk for saying, “Without cars, we’re in deep trouble, folks!”
But fear not, hybrid enthusiasts! Gaikindo chimed in with a positive note, claiming that incentives could “boost” the hybrid car potential in Indonesia. “If we focus on just one type of technology, it is very dangerous,” said the ever-wise Nangoi, sounding remarkably like my mother warning me against dating one type of boy—like the musician type who can’t keep a job.
As the deadline for these incentives looms, one can only hope they don’t fumble it like my attempts at starting a diet. But judging by previous subsidy flops, let’s just say, I wouldn’t bet my last fried rice on it! More stimuli are needed, the industry says, and hopefully, we won’t let the chance to evolve slip through our fingers like my youth in the ’90s.
So, here’s to the future of hybrid cars in Indonesia! May the incentives come rolling in faster than a teenager in a candy store. And remember, just like in comedy, timing is everything—let’s just hope the government gets their punchline right.
Jakarta –
In an encouraging announcement, Minister of Industry Agus Gumiwang Kartasasmita detailed the much-anticipated incentives set to support hybrid vehicles, part of a broader effort to stimulate the automotive sector. His ministry has crafted a comprehensive proposal aimed at introducing a series of financial incentives to encourage the adoption of not only electric vehicles (EVs) but also hybrid cars, with hopes that these regulatory changes will be finalized as early as next year.
Speaking at the Indonesia International Motor Show in Tangerang, Banten, on Friday (22/11/2024), Agus said, “Incentives for hybrids are one of the key measures we have proposed; it is an important topic that will be discussed soon, with coordination led by the Coordinating Ministry for Economic Affairs.” He underscored that these incentives are part of a strategic initiative devised during the COVID-19 pandemic to stimulate the automotive market, specifically referencing the Sales Tax program on Government-Borne Luxury Goods (PPnBM DTP).
“What the incentives will encompass could include the PPnBM DTP among others. As for the specific amounts of these incentives, I ask for your patience as it remains under internal discussion within the government,” Agus elaborated.
He expressed optimism that with internal agreement reached among government stakeholders, the implementation of these incentives could begin early next year. The scenario is particularly crucial as the Indonesian Automotive Industry Association (Gaikindo) has recently revised its annual sales target, reducing it from over 1 million units to 850,000 units, resulting in a staggering economic loss estimated at IDR 10.6 trillion.
This decline in expected sales volumes has significant implications for the automotive sector, notably affecting the approximately 1.5 million individuals employed in related industries, both upstream and downstream. “This sector is vital to the Indonesian economy, particularly in its contribution to Gross Domestic Product (GDP) within the manufacturing domain,” Agus remarked.
In response to the announcement, Gaikindo expressed enthusiasm, recognizing the potential of hybrid vehicles in Indonesia and the vital role that government incentives can play in enhancing market growth. “If we focus solely on a single technology, it poses a considerable risk, as we cannot predict future market leaders,” stressed Nangoi from Gaikindo during a separate engagement.
“Currently, we observe a robust growth trajectory for hybrid vehicles in Indonesia. To prevent manufacturers from relocating their production outside the country, incentives are imperative for both internal combustion engine (ICE) and electric hybrid vehicles,” he reiterated.
Highlighting the substantial impact of the revised sales target, Nangoi added, “The Minister has indicated that the effects could be monumental, potentially affecting around 250,000 units. Therefore, we are striving to mitigate any further declines.” He concluded with a hopeful note, urging for more immediate stimuli to be enacted, as the Minister suggested that several new incentives might be implemented swiftly in the coming year.
(admin/rgr)
How can government incentives impact the production and sales of hybrid vehicles in Indonesia?
Otive Industry Association (Gaikindo) has adjusted its sales targets due to the dramatic impact of the pandemic. Originally aiming for more than 1 million unit sales, the new goal has been set at 850,000 units, representing a substantial drop of 300,000 units and a corresponding loss for the economy estimated at IDR 10.6 trillion.
The repercussions extend across the sector, affecting the livelihoods of approximately 1.5 million individuals connected to the automotive industry, highlighting its critical role in the economy. Agus emphasized this sector’s contribution to Indonesia’s Gross Domestic Product (GDP) and its relevance in the manufacturing landscape.
Gaikindo has welcomed the prospect of these incentives, asserting that stimulating hybrid vehicle production is paramount. The association advocates for a diversified approach to technology in the auto industry, signaling that focusing exclusively on one powertrain technology could lead to uncertainty about future leadership in the sector.
The Minister and industry leaders have articulated the urgent need for incentives to curb the projected downturn in sales and maintain positive growth momentum. They remain hopeful that new financial stimuli can swiftly transition from proposal to implementation, echoing the necessity for timely government action.
As stakeholders await concrete details, including the specifics of the upcoming incentives, the anticipation builds—mirroring the electrifying potential of the hybrid car market in Indonesia as it seeks to navigate the tumultuous aftermath of a global pandemic.
