automotive

Government Reveals Plan To Extend Tax Incentives And Electric Vehicle Program

Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed that several incentives will carry on under President Prabowo Subianto's administration. These key incentives are designed to enhance public purchasing power and stimulate economic growth in the upcoming years. Among the incentives are the Government-Borne Value Added Tax (PPN DTP), Luxury Goods Tax (PPnBM), and benefits for electric vehicles.

"Some of the priority incentives are set to continue into next year and will be discussed with the Ministry of Finance, including PPN DTP, PPnBM, and PPN DTP for both motor vehicles and electric cars," Airlangga mentioned during a press conference in Jakarta on Sunday (November 3, 2024).

Moreover, the government intends to maintain the People's Business Credit (KUR) program and investment loans aimed at revitalizing labor-intensive industries. This initiative is anticipated to boost the industrial sector's capacity and fortify the national economy. In terms of Human Resource Development, the government will introduce a job loss guarantee program, a Ready Worker program, and a Worker Village initiative to enhance the quality and competitiveness of the Indonesian workforce.

Airlangga stressed the importance of continuing these various incentive programs, noting that public purchasing power is still relatively low. "To foster economic growth, incentives like PPN DTP are vital for all segments of society," he stated.

Finance Minister Sri Mulyani Indrawati highlighted that the five social assistance initiatives launched during President Joko Widodo's term will persist under President Prabowo's administration. She shared this information while reviewing the 2025 State Budget Draft. Sri Mulyani noted that the upcoming budget will prioritize enhancing the quality of human resources, focusing on areas such as education, health, food security, and energy.

"While there are new priorities to address, we will also ensure continuity in the 2025 budget," Sri Mulyani stated during a meeting with the Budget Agency of the House of Representatives on Tuesday (August 27), as reported by the Ministry of Finance. Through various incentives and ongoing programs, the government aims to stimulate economic growth and maintain stability during this transition period.

Tag: Airlangga Hartarto Electric Vehicle Program Tax Incentives