TAX RELIEF STIMULATES AUTOMOTIVE INDUSTRY

Jakarta, 9 Dhulhijjah 1436/23 September 2015 (MINA) – Three Japanese automotive companies received tax relief in the form of tax allowance from the government. The three companies are PT Suzuki Indomobil Motor, PT Toyota Motor Manufacturing Indonesia, and PT Hino Motors Manufacturing Indonesia.

Industry players are pleased with this decision because tax relief could ease the burden on the current automotive market condition. Gunadi Sindhuwinata, the Commissioner of PT Indomobil Sukses International, stated that this incentive has been awaited by businessmen.

“We received tax relief in accordance to the rules,” said Mr. Sindhuwinata in Jakarta, Tuesday. Antaranews quoted by Mi’raj Islamic News Agency (MINA) as reporting.

Sindhuwinata mentioned that this policy could improve Indonesia’s investment climate because granting tax allowance made investors believe to invest in Indonesia.

Granting tax allowance for the three automotive companies referred to Government Regulation No. 52 of 2011 and Government Regulation No. 18 of 2015.

“Granting tax allowance has followed the rules,” said Haris Munandar, the Head of Industrial Research (BPPI) of the Ministry of Industry.

Tax allowance for the three automotive companies is in the form of 30% remission of net income tax of the total investment for six years, respectively by 5% per year.

PT Suzuki Indomobil Motor (SIM) received tax allowance because the company has increased its investment of Rp11.65 trillion for building their factory. Their factory in Cikarang has been operating since May 2015 with production capacity of 200,000 units per year.

PT Toyota Motor Manufacturing Indonesia (TMMI) received tax allowance because the company has also been contributing to investment. TMMI has increased its investment of Rp2.76 trillion. However, TMMI management declined to give commentary related to the granting of tax allowance.

PT Hino Motors Manufacturing received tax allowance because the company has increased investment of US$202.5 million. (T/P008/R03)

Mi’raj Islamic News Agency (MINA)