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Automobile industry get additional incentives in the form of reduction in import duty for imported cars for the type of CBU (completely built up units / intact), CKD (completely knocked down / down) and IKD (incompeletely knocked down). The decline of import duty is in accordance with the rules of finance ministers (FMD), number 241 of 2010 issued on 22 December.
JAKARTA - The automotive industry to get additional incentives in the form of reduction in import duty for imported cars for the type of CBU (completely built up units / intact), CKD (completely knocked down / down) and IKD (incompeletely knocked down). The decline of import duty is in accordance with the rules of finance ministers (FMD), number 241 of 2010 issued on 22 December.
Chairman of the First Joint Indonesian Automotive Industries (Gaikindo) Jongki D Sugiarto said, this year, get a CBU import tariff reduction of 15 percent, from 55 percent to 40 percent. As for CKD imports fell from 15 percent to 10 percent, and IKD to 7.5 percent from 15 percent.
Jongki explained, the reduction of import duty is a demand from the national automotive industry. With this application, the cost of imported automotive products decreased. This is proof that the government is consistent in supporting the growth of the national automotive industry.
With the reduction of tariffs, he said, so should the price of cars will decline. Because, at present, some manufacturers such as Toyota and Daihatsu have been using domestic component of 80 percent.
"The imposition of import duty does not significantly affect the increase in production costs," said Jongki in Jakarta, Tuesday (01/25/2011).
On the other hand, according to Jongki, the planned increase in duty vehicles behind the name in some areas causing some manufacturers to raise prices. For example, he said, local government (local government) in East Java under the name of duty set at 15 percent, the Jakarta Government and Local Government by 10 percent of North Sumatra and Sulawesi 15 per cent 12.5 per cent.
Nevertheless, Jongki expect national economic conditions will continue to improve this year. In addition, the strengthening of the rupiah currency should also be avoided because it could hamper sales. "BI rate must also be at the level of 6.5 percent," he said.
Meanwhile, Asia Pacific vice president, Automotive and Transportation Practice at Frost & Sullivan, Vivek Vaidya welcomed the government's plan to implement a progressive tax such as that conducted by the Jakarta Government.
"Progressive tax is good because it will give incentives to car buyers first (first-time buyers) and disincentives for those who already own a car. This will open the market for low cost car as expected the government," said Vivek. (Eden)
By rani, okezone.com, Updated: 1/25/2011 7:14 AM
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