Minister of Industry Acknowledges Additional Tax Could Burden Automotive Industry

KatadataOTO – Agus Gumiwang Kartasasmita, Minister of Industry (Menperin), acknowledged that the additional levy tax based on a certain percentage (opsen) from local governments will burden the national automotive industry. Especially since the industry's current condition is still under pressure.

He also assessed that the policy is considered a challenge for both companies and buyers.

"The most difficult challenge for car manufacturers and consumers is the tax regulated by local governments, called opsen. It will make the automotive sector heavy," said Agus, as reported by Antara (03/12).

He even mentioned that opsen has the potential to harm the economy of each respective region. As a result, local governments will look for other ways to increase revenue, including implementing tax relaxations.

Photo : KatadataOTO

“I think it won't be long before local governments feel that the opsen policy is actually detrimental to the regional economy. I see them implementing, seeking, or issuing regulations for relaxation," he affirmed.

The Minister of Industry also revealed that this levy could potentially make people reluctant to buy new cars. The impact is that the local government will not receive any income.

“Because the local people cannot buy cars and in the end, the (tax) revenue will not come to them and they will not get any income,” he added.

PT Toyota Astra Motor also acknowledged that the policy will affect car prices. Therefore, they ask the local governments that impose the opsen levy to carefully consider its amount.

“Yes, the opsen increase is quite high. Currently, we see that local governments are conducting a review,” said Anton Jimmi Suwandy, Marketing Director of PT TAM to KatadataOTO, some time ago.

Photo : TrenOto

It was previously reported that the government will officially implement an opsen on vehicle tax in January 2025. This policy is in accordance with Law (UU) Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).

Opsen is an additional levy imposed based on a certain percentage. There are three types of regional taxes subject to opsen, namely Motor Vehicle Tax (PKB), Motor Vehicle Title Transfer Fee (BBNKB), and Non-Metallic Mineral and Rock Tax (MBLB).

Each type of opsen has regulations adjusted to the prevailing laws and regulations in each respective region.