Jakarta (VNA) Indonesia’s car sales jumped by 228 percent year on year in May 2021, while that of motorcycles increased 277 percent on an annual basis, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

The rise was thanks to the reduction of Luxury Goods Sales Tax (PPnBM) on some motorised vehicles since March.

Since March 1, Indonesia has applied 551 million USD worth of tax preferential policies on automobile and housing in a bid to speed up economic recovery, including 2,990 billion rupiah for automobile PPnBM tax cut.

Accordingly, the PPnBM tax was cut by 100 percent from March to May and 50 percent from June to August and 25 percent from September to November.

The PPnBM tariff for 4x4 vehicles has been cut to 25 percent from April to August and will be down to 12.5 percent from September to December.

The policy covers 29 automobile models, which are produced by six manufacturers of PT Toyota Motor Manufacturing Indonesia, PT Astra Daihatsu Motor, PT Mitsubishi Motors Krama Yudha Indonesia, PT Honda Prospect Motor, PT Suzuki Motor Indonesia, and PT SGMW Motor Indonesia./.