Honda Brio Satya Braces for 12% PPN Hike: Price Increase Inevitable, Extra Perks Promised
PT Honda Prospect Motor (HPM) has confirmed that the recently implemented 12% Value Added Tax (PPN) will indeed impact the pricing of the Honda Brio Satya. The company is currently reviewing the new tax rules to determine the final price of the vehicle.
Yusak Billy, Director of Marketing at PT HPM, stated, "We are still in the process of studying the new tax rules to finalize the price of the Honda Brio Satya post the 12% PPN implementation. Once we have completed this process, we will announce the final price, including the impact on the vehicle’s cost."
Billy further explained, "The price of a vehicle is indeed influenced by the tax rate. We are currently analyzing the details of the new tax rules to determine the final selling price with the 12% PPN in place."
When asked about the potential price increase, Billy assured, "When the price does increase, we will ensure that we provide additional value to our Indonesian customers. Their satisfaction remains our top priority. We are also preparing programs to make the purchasing process more convenient and affordable for our customers."
The Honda Brio Satya is currently priced starting from Rp 167 million on the road in Jakarta. Despite the tax adjustment, the final price is expected to remain below Rp 200 million.
Indonesian Finance Minister Sri Mulyani has previously confirmed that all motor vehicles subject to Luxury Goods Tax (PPnBM) will be affected by the 12% PPN. Currently, Low Cost Green Cars (LCGCs) are taxed at 3% PPnBM, in accordance with the prevailing regulations.
The list of luxury goods subject to PPnBM is outlined in PMK Number 141 of 2021, with a more detailed list of non-motor vehicle luxury goods included in PMK Number 15 of 2023.
When first introduced 12 years ago, LCGCs benefited from a 0% PPnBM rate, as per the Minister of Industry Regulation Number 33/M-IND/PER/7/2013 on the Development of Energy-Efficient and Affordable Four-Wheeled Motor Vehicle Production. To qualify for this tax exemption, vehicles had to meet certain criteria, such as having an engine capacity of 980-1200cc and a fuel consumption rate of at least 20 km/liter.
However, since October 2022, LCGCs are no longer fully exempt from PPnBM and are taxed at the standard 3% rate.
