Jakarta: The demand for automotive products skyrocketed to 190 percent after the Governnment decided to relax Government-borne luxury goods sales tax (PPnBM DTP) on automobiles, President Joko Widodo (Jokowi) has stated.
Issued in March 2021, the policy has successfully boosted product sales and increased people’s purchasing power in automotive sector.
Therefore, it must be maintained since it will bring multiplier effects to other sectors.
"It indicates that the products are not in stock and the production soars, meaning that the automotive industry has revived. We must maintain the revival of automotive industry amid the covid-19 pandemic which currently shows no sign of abating," he said during the opening of the 2021 Indonesia International Motor Show from the State Palace in Jakarta on Thursday, as quoted from the Cabinet Secretariat's website.
According to him, Indonesia’s manufacturing industry also starts to see a rebound as Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) climbed to 53.2 which is an expansive phase.
In addition, Bank Indonesia’s Prompt Manufacturing Index is predicted to reach 55 percent at the second quarter.
President Jokowi affirmed that the figure is higher than that of Indonesia’s PMI before the pandemic, which was recorded at 51 percent.
He went on to say that automotive industry is an engine that drives the national economy.
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