Car sales surge 70 per cent in Indonesia after luxury tax cut

Lines of vehicles pack kilometer 6 of the Jagorawi Toll Road in Jakarta on Oct. 30, 2020. - Antara

JAKARTA (The Jakarta Post/ANN): Domestic car sales skyrocketed in March as a luxury tax (PPnBM) cut for small cars came into effect, but overall sales remained below prepandemic levels, meeting observers’ expectations about the effect of key incentives on consumer spending.

Nearly 85,000 cars were sold domestically in March, up 72.5 per cent from the previous month and up 10.5 per cent from March of last year, according to data from the Association of Indonesian Automotive Manufacturers (Gaikindo).