KONTAN.CO.ID - JAKARTA. The government has officially implemented the Government-Paid Luxury Goods Sales Tax (PPnBM DTP) incentive for electric cars in 2025.

PT CIMB Niaga Auto Finance (CNAF) considers the government's incentive policy for electric vehicles to be a good stimulus to boost sales growth of environmentally friendly vehicles in Indonesia.

President Director of PT CIMB Niaga Auto Finance Ristiawan Suherman said that the market opportunity for environmentally friendly vehicles is still very wide open and it is hoped that the incentive can further encourage public interest in switching to environmentally friendly vehicles.

"This is certainly an opportunity for finance companies, especially CNAF. We will be more aggressive in distributing financing for environmentally friendly vehicles this year," he told Kontan, Tuesday (14/1).

Furthermore, Ristiawan hopes that financing for environmentally friendly vehicles can boost financing for new vehicles that have the potential to be hampered this year due to various challenges.

This is because the market share for environmentally friendly vehicles is still quite large. Supported by the many new types or types of environmentally friendly vehicles at affordable prices today.

"In addition, public awareness of eco-green is increasing, so the tendency to switch to environmentally friendly vehicles will also increase," he said.

Meanwhile, Ristawan explained that the distribution of financing for environmentally friendly or electric vehicles by CNAF throughout 2024 reached IDR 740 billion. This value grew by 120%, compared to the previous year which was IDR 337 billion.

Ristiawan said that the significant growth was due to public interest in electric vehicles which had begun to grow.

For 2025, CNAF is targeting a total distribution of new financing for environmentally friendly or electric vehicles of IDR 665 billion. In order to achieve this target, one of the strategies that CNAF will implement is to offer lower interest rates/margins than regular financing with special conditions and will certainly be an attractive choice for customers.

"In addition, CNAF also prioritizes the acceleration of the application process and simple documents that can increase the growth of environmentally friendly car financing," said Ristiawan.

For information, the government has issued Regulation of the Minister of Finance (PMK) Number 135 of 2024 which discusses the incentive for Sales Tax on Luxury Goods Borne by the Government (PPnBM DTP) for electric cars in 2025.

In the policy, the incentive applies to electric cars imported intact or completely built up (CBU) and assembled domestically or completely knocked down (CKD).

The government will bear 100% of the PPnBM on imports of CBU electric cars for the 2025 fiscal year. Likewise, the PPnBM for locally made electric cars is borne 100% by the government for the 2025 fiscal year. The PPnBM DTP incentive is valid from the January 2025 tax period to the December 2025 tax period.