Gaikindo Lowers 2025 Car Sales Target to 900,000 Units Amid Tax Concerns

JAKARTA, investortrust.id – The Association of Indonesian Automotive Industries (Gaikindo) has revised its 2025 car sales target to 900,000 units, down from its initial projection of 1 million units. This new target does not account for the potential impact of additional regional tax levies, also known as opsen.

Gaikindo Secretary General Kukuh Kumara said that the association has yet to conduct detailed discussions with its members, projecting sales between 750,000 and 900,000 units under current conditions.

“We’re still in the early stages of assessing this. We haven’t sat down and calculated everything thoroughly yet. Even last year, without the opsen tax, we didn’t hit the 1 million mark,” Kukuh said during a discussion hosted by the Industrial Journalists Forum (Forwin) in Jakarta on Tuesday, January 14, 2025.

He noted that the current target does not include the impact of the proposed opsen tax, which comprises motor vehicle tax (PKB) and motor vehicle title transfer fees (BBNKB). If implemented, the tax could further pressure sales, with projections potentially dropping to pandemic-era levels of 650,000 to 700,000 units. “It’ll be a tough situation,” Kukuh added.

Previously, Gaikindo had set a target of 1 million car sales for 2024 but later revised it to 850,000 units by October. The final sales figure for 2024 stood at 865,723 units.

The opsen tax is mandated under Law No. 1 of 2022 concerning Financial Relations between the Central and Regional Governments (HKPD). Under this law, provincial governments may impose levies on non-metallic minerals and rocks, while regencies and municipalities are authorized to collect opsen from PKB and BBNKB.

For motor vehicle taxes, regional governments are permitted to impose opsen rates up to 66% of the PKB and BBNKB revenue allocated to provincial governments.