Government Extends Tax Incentives And Electric Vehicle Program

ANTARA FOTO/Aditya Pradana Putra/foc

Government Extends Tax Incentives And Electric Vehicle Program

Wednesday, 06 Nov 2024

Coordinating Minister for Economic Affairs Airlangga Hartarto announced several incentives that will continue under President Prabowo Subianto's administration. These priority incentives aim to support public purchasing power and boost economic growth in the coming years. The incentives include Government-Borne Value Added Tax (PPN DTP), Luxury Goods Tax (PPnBM), and incentives for electric vehicles.

"Some ongoing priority incentives are proposed to continue into next year and will be discussed with the Ministry of Finance, such as PPN DTP, PPnBM, and PPN DTP for motor vehicles and electric cars," Airlangga said at a press conference in Jakarta on Sunday (November 3, 2024).

Additionally, the government plans to continue the People's Business Credit (KUR) program and investment loans to revitalize labor-intensive industries. This program is expected to enhance the capacity of the industrial sector and strengthen the national economy. In the area of Human Resource Development, the government will launch a job loss guarantee program, a Ready Worker program, and a Worker Village initiative to improve the quality and competitiveness of the Indonesian workforce.

Airlangga emphasized that continuing these various incentive programs is crucial because public purchasing power remains relatively weak. "To encourage economic growth, incentives like PPN DTP are essential for all segments of society," he added.

Meanwhile, Finance Minister Sri Mulyani Indrawati emphasized that the five social assistance programs initiated during President Joko Widodo's administration will continue under President Prabowo's government. She made this statement while discussing the 2025 State Budget Draft. According to Sri Mulyani, the 2025 budget will focus on programs that enhance human resource quality, including education, health, food security, and energy.

"There are new priorities to consider, but continuity will also be maintained in the 2025 budget," Sri Mulyani explained during a meeting with the Budget Agency of the House of Representatives on Tuesday (August 27), as reported by the Ministry of Finance. With various incentives and ongoing programs, the government aims to boost economic growth and maintain stability during the transition of power.