• Automotive: LCGC car business will be more challenging in 2025
The Low-Cost Green Car (LCGC) car business will be more challenging in 2025 in line with the
imposition of a 12% Value Added Tax (VAT) rate targeting LCGC starting early this year. On
the other hand, LCGC does not enjoy fiscal incentives like those obtained by battery-based
electric cars or Battery Electric Vehicles (BEV) or hybrid cars. Before there was a 12% VAT
policy, LCGC was actually subject to Sales Tax on Luxury Goods (PPnBM) worth 3%. Based on
data from the Association of Indonesian Automotive Industries (Gaikindo), the LCGC
segment was able to contribute up to 21% of total national car sales in 11M24. During this
period, national LCGC wholesale sales (factory to dealer) were recorded at 162,320 units (-15%
yoy). Marketing Director of Toyota Astra Motor (TAM), Anton Jimmi Suwandy, also confirmed
that his party had implemented LCGC product selling prices adjusted to the 12% VAT policy.
Even though burdened by the 12% VAT, Toyota believes the LCGC market will remain busy
this year because it still benefits from lower PPnBM rates than other conventional car
segments at 3%. Toyota remains committed to supporting the continuity of LCGC sales. One
of them is by not increasing the selling price of the car, excluding the tax factor, in January 2025. Usually, the Brand Holder Agent (APM) often adjusts the selling price of its models at
the beginning of the year due to various factors, such as inflation, exchange rate movements,
costs. production, etc. (Kontan)
• HOKI strengthens distribution network
Buyung Poetra Sembada (HOKI) continues to actively strengthen and expand the
distribution network for Topi Koki rice and Dailymeal healthy rice throughout Indonesia, in
line with the increasing supply of white rice on the market last year and the high demand for
Dailymeal products in the community. Entering the beginning of 2025, HOKI is actively
appointing new distributors, one of which is Indomarco, which has a distribution network
spread throughout Indonesia. Indomarco itself has 600,000 active outlets that can support
the distribution of HOKI products so that they are more easily accessible. Distribution of HOKI
products through the Indomarco distribution network will later include modern markets,
minimarkets, traditional shops and other channels such as food service. Through increasingly
integrated logistics management, HOKI is confident that it will be able to ensure smooth
product supply, increase brand awareness, and accelerate product adoption in the market.
(Kontan)
• KLBF ensures availability of medicine as HMPV virus entered Indonesia
Kalbe Farma (KLBF) ensures the availability of medicine as the Human Metapneumovirus
(HMPV) virus outbreak has spread to Indonesia. Corporate External Communication of KLBF,
Hari Nugroho, said that the company is currently monitoring the development of the HMPV
virus in Indonesia. Previously, the Indonesian Ministry of Health (Kemenkes) stated that the
HMPV virus had entered Indonesia. However, the HMPV virus is different from the Covid-19
virus, whereas Covid-19 is a new virus, while HMPV is similar to flu and has been around since 2001. It has characteristics similar to the common cold, with symptoms such as cough, fever,
runny nose and shortness of breath. Most people who are infected will recover on their own
without requiring special treatment. (Bisnis Indonesia)
