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Jakarta, CNBC Indonesia – Used car entrepreneurs finally laughed out loud because Finance Minister Sri Mulyani finally officially declared that he was not willing to give a 0% tax on new cars.
They considered that if it was delivered, it would only benefit the car factory, which by the way came from a foreign company.
Meanwhile, national used car dealers will only bite their fingers, because the unit price already in stock will be shattered.
“The effect is more mudhorat than profits. The only benefit is the factory. They want to sell the shares they have made. How they sell their shares, that’s the goal, but to destroy the existing ones, the ones that exist, “Fahmi, owner of Nava Sukses Motor at Jl. Madrasah No. 23, Cilandak, South Jakarta, told CNBC Indonesia, quoted on Tuesday (20 / 10).
In fact, the sale of used cars was threatened, especially when the industry or car factories lobbied the Ministry of Industry.
In the end, Industry Minister Agus Gumiwang admitted that he had proposed relaxing the car tax.
Unfortunately, because no long-term decisions were made, car sales were disrupted. Many people withhold purchases, including new cars.
Fahmi continued, there was an injustice considering that when big factories lost money, they screamed for 0% tax incentives.
“In the end, it became a weapon to eat, sir. At first I wanted to make a profit, and finally I got worse. Only a car that was hit by the crown was a natural loss, it couldn’t be helped. Now they are big factories, they are converting their losses screaming 0% in. Yesterday, how many million were sold yesterday? units each year, thankfully they just stay there, “he said.
“Don’t be too [mendukung] to large investors. Usually they threaten to fire them (lay off), close factories, relocate. Ordinary, but don’t be afraid. Great Indonesian market. Now sell the car where the hell it is delicious. How many people do we have? They also moved at a loss, but they are still selling it in Indonesia, “Fahmi said.
He considered that it was impossible for Japanese automakers to leave Indonesia. When the sale is in a loss or is still profitable at a reduced value then it is very reasonable. The government has strong bargaining power because Indonesia’s market segmentation is very large.
“It is impossible for them to leave. If they leave, what China eats. Toyota cars go, he (China) all comes here. Japan is Indonesia’s big market. Let them be smart (lobbyists),” he continued.
Meanwhile, the secretary general of the Indonesian Automotive Industry Association (Gaikindo), Kukuh Kumara, casually responded to Sri Mulyani’s statement. He emphasized that Gaikindo is still awaiting an official statement on the proposal.
“Don’t be in a hurry, there is no exit policy,” Kukuh told CNBC Indonesia on Monday (10/19).
He said Gaikindo was still awaiting the official response from the government to the 0% tax proposal. Although he does not know where the discussion about the 0% tax proposal has been, between the Ministry of Industry and the Ministry of Finance.
“We are not working on signals. For us the important thing is the certainty of the decision,” he said when asked if Sri Mulyani’s statement was a strong indication that the 0% tax proposal would be rejected.
Previous, Finance Minister Sri Mulyani Sensory stated, the government will not provide tax breaks for the purchase of new cars. At least for now there are no plans or discussions about it.
“We are currently not considering granting a 0% new car tax as reported by the industry and the Ministry of Industry,” Sri said. Mulyani via videoconference, Monday (10/19/2020).
[Gambas:Video CNBC](bag of bag)
