Sign up | Log in



Home  >>   Daily News  >>Indonesia>>Automotive>>Auto industry calls for luxury tax cut on sedans
NEWS UPDATES Asean Affairs    August  31,  2017  

Auto industry calls for luxury tax cut on sedans

The Indonesian Automotive Manufacturers Association (Gaikindo) chairman Jongkie Sugiarto said on Tuesday that the association had long lobbied the Finance Ministry to reduce the luxury tax on sedans.

He said the cut in luxury tax for sedans from 30 to 10 percent, a similar rate for multi-purpose vehicles, would encourage producers to manufacture more sedans, not only for the domestic market but also for export.

"Because of cheaper taxes, Indonesia has now become the king of MPVs, but our exports are just 200,000 units per year, from a total production of 1.3 million,” Jongkie said during a discussion on the automotive industry organized by the Indonesian Business Data Center (PDBI) in Jakarta on Tuesday.

“Thailand produces 2 million units of vehicles per year, but it exports 1.2 million because they produce everything from sedans and pickups to MPVs. The Thai government also does not discriminate in the taxes on the automotive products."

He said Gaikindo had already hired experts at University of Indonesia's Institute for Economic and Social Research (LPEM UI) to carry out independent research on the issue and the result was that a luxury-tax cut on sedans would increase sales by 17 percent.

This year, Gaikindo's efforts received support from Industry Minister Airlangga Hartarto, but it was still struggling to convince the Finance Ministry.

"We have lobbied for so long [the Finance Ministry], but it has not moved," Jongkie said, adding that the association had proposed the tax cut since 2011.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                          August 31, 2017 Subsribe Now !
• Grab to invest US$100 million in Myanmar Subcribe: Asean Affairs Global Magazine
• Kalla instructs Geo Dipa to resolve power plant rights issue
Public sceptical of media attacks
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Auto industry calls for luxury tax cut on sedans
• Vietnam’s Viettel to launch 4G network in Myanmar
Asean Analysis                  August 25,  2017
• Asean Analysis August 25, 2017
Will Trump’s “America First” Result in U.S. Economy Being Left Behind in Asia?
Advertise Your Brand

Asean Stock Watch   August  30,  2017

• Asean Stock Watch-August 30, 2017
The Biweekly Update
• The Biweekly Update  August 25, 2017

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand