The production of four or more wheeled vehicles in the January-May, 2021 period stood at 413 thousand units and 320 thousand units of them were sold.
Jakarta (ANTARA) - Indonesia's automotive industry has remained one of the manufacturing sub-sectors contributing positively to the national industry, Industry Minister Agus Gumiwang Kartasasmita said.



The export of four or more wheeled vehicles and spare parts in the January-April, 2021 period was valued at Rp29.88 trillion, of which Rp18.63 trillion came from the exports of completely built up (CBI) vehicles to more than 80 countries, he said in a written statement released on Wednesday.



"The production of four or more wheeled vehicles in the January-May, 2021 period stood at 413 thousand units and 320 thousand units of them were sold," he informed.



To boost the sales of locally-produced motor vehicles, the government has lowered the government-borne luxury sales tax for four-wheeled motor vehicles with an engine capacity of up to 2,500 CC until December 31, 2021, he pointed out.


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Based on an evaluation, the relaxation of the luxury sales tax has begun to boost sales of motor vehicles stipulated in the regulation, Kartasasmita said. As of June, 2021, the total sales had reached 167,774 units, he informed.



"Of course, this will have a positive impact on the recovery of the automotive industry, which has a broad multiplier effect on other industrial sectors. So, it will eventually jumpstart the national economy," the minister remarked.



"To date, 21 four or more wheeled vehicle producers are operating in Indonesia, with a total investment of Rp71.35 trillion and a production capacity of 2.35 million units per year. The companies employ 38 thousand workers, not to mention 1.5 million people employed in the industrial value chain," he added.


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Translator: Risbiani F, Suharto
Editor: Fardah Assegaf
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