Electric car prototype - Photo by Enegy and Mineral Resources Ministry

JAKARTA (TheInsiderStories) – Good morning! Indonesian Government to revise luxury goods sales tax on cars to boost automotive production and export. The scheme revision concerning the basis of imposition, engine capacity, vehicle type, principle of imposition, and incentive programs.

It said, finance ministry will categorize the tax based on fuel consumption and CO2 emission level for the luxury goods sales tax impose, targeting the development of low emission cars. The lower emission, the lower taxation tariff. Meanwhile, the engine capacity will only be divided into below 3,000 cc and above 3,000 cc.

The ministry also sees a room for the industry to grow, as transportation industry only contributes 1.76 percent to Gross Domestic Product (GDP). In 2035, government targets to produce four million units car, consist of 2.5 million units sales in domestic and 1.5 million units for export.

To reach the target, Indonesia Finance Minister Sri Mulyani Indrawati calculated that production must increase by 6.63 percent annually, with 4.67 percent domestic sales and 10.75 percent export growth. Government plans to start imposing the new tax regulation in 2021.

Amid the trade negotiations with the United States (US), Chinese official said they have reached consensus on many issues, and have discussed previous commitments on avoiding competitive devaluation of currencies. Moreover, US and China also talked about respecting the autonomy of each other’s monetary policy, said People’s Bank of China Governor Yi Gang.

Previously, Vice Commerce Minister Wang Shouwe said that any enforcement mechanism for a prospective trade deal must be two way, fair, and equal. China stated hopeful for prospects of the negotiations.

But until now, there is no confirmed date yet for a possible deal signing between the US President Donald Trump and China President Xi Jinping. White House Press Secretary Sarah Sanders said, the summit date has not been set while the negotiations are still ongoing.

At the mean time, US retail sales rose modestly in January by 0.2 percent, supported by an increasing of building materials and more discretionary spending. While previously in December, the retail sales data slumped by 1.6 percent. It was the biggest downfall since September 2009 when the economy was emerging from recession.

Then Investigators found two black box recorders to help investigating the Ethiopia Airlines crashed that killed 157 people. They are now seeking to find the cause of the crash with both the cockpit voice recorder and digital flight data. Victims of the crash came from more than 30 countries, included 21 United Nations staffs.

The Ethiopian Airlines 737 MAX 8 plunged into farmland minutes after take-off from Addis Ababa for Nairobi on Sunday. According to witnesses, the plane was very close to the ground and made a turn, with smoke and sparks coming from the back of the plane. The plane move made cows in the fields ran in panic.

By this accident, Ethiopia, China and Indonesia temporarily grounded their fleets of Boeing’s 737 MAX 8 aircraft. In October 2018, Indonesian Lion Air which flew with the same plane model crashed and killed 189 passengers and crews. Boeing shares hit hard and slumped by 12 percent due to this accident, the worst downfall in the last 18 years.

Indonesian stocks market fell 0.26 percent to 6,366.43 with Rp558.6 billion foreign net sells. Rupiah also continued its depreciation by 0.71 percent to 14,241.45 against the US Dollar.

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia