Dialogue: Jurnal Ilmu Administrasi Publik

Volume 6, Issue 2, Desember 2024 (717-809)

ISSN Online: 2685-3582
https://doi.org/10.14710/dialogue.v6i2.20653

IMPLEMENTATION OF TAX INCENTIVES ON SALES ON LUXURY

GOODS BORNE BY THE GOVERNMENT FOR AUTOMOTIVE
INDUSTRY AFTER COVID-19 PANDEMIC

Citra Yadin Ramadhena1, Maria R.U.D. Tambunan1

1Faculty of Administrative Sciences, Universitas Indonesia, Depok, Indonesia

Corresponding Author: maria.tambunan@ui.ac.id

ARTICLE INFO ABSTRACT

The Covid-19 pandemic has downturned the business sector in Indonesia. This
prompted the government to provide tax incentives through the National
Article history: Economic Recovery program. To encourage people's purchasing power,
Received : 20-02-2024 support businesses, and restore economic conditions, the government issued a
Revised : 29-02-2024 Sales Tax on Luxury Goods borne by the government (PPnBM Ditanggung
Accepted : 07-03-2024 Pemerintah/PPnBM DTP) incentive for the automotive industry. This study
Published : 24-12-2024 aims to analyze the PPnBM DTP after the Covid-19 and analyze the
government's considerations to extend the policy. This research applied post-
positivist approach with qualitative research method. The data was collected
Keywords: through literature review and interview. The research shows that
Tax incentives, PPnBM DTP, implementing this policy produces several benefits. However, it also has an
Policy, Covid-19, Automotive anomaly. The community, especially the lower middle class, faces difficult
Industry management. conditions, but on the other hand, the middle class is encouraged to spend their
money. The implementation of this policy also does not experience significant
obstacles because adequate resources and communication for implementing
policy is established smoothly. The policy has succeeded in maintaining
enthusiasm, people's purchasing power and lead to a positive response from
various parties. In addition, extension of the policy, 100% PPnBM DTP has
been made by considering both from a social and economic perspective.

INTRODUCTION

During the Covid-19 pandemic which has announces the ineffectiveness of the Covid-19
begun in 2020, state spending experienced a Law and no later than the end of the 2nd year
significant increase. This was because the Covid- since the promulgation of the Covid-19 Law
19 pandemic has created a negative impression (Pujianti, Anjarsari, & Yuliana, 2021).
on various economic sectors and the business Furthermore, Mustajab et al. (2020) explained
sector. The status of the Covid-19 pandemic was that during the Covid-19 pandemic there was a
still valid until recently as described in the legal change in the work patterns and work culture of
considerations of the Constitutional Court in the majority of businesses in Indonesia. This is
Decision No. 37/PUU-XVIII/2020 that the because many jobs are delayed and have an
Pandemic will end when the president impact on decreased work productivity. The

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Volume 6, Issue 2, Desember 2024 (717-809)
ISSN Online: 2685-3582
https://doi.org/10.14710/dialogue.v6i2.20653

sectors to be affected were Micro, Small and incentive budget and the realization of the tax
Medium Enterprises (MSMEs), corporate, incentive. The realization of tax incentives as of
finance, and household sectors (Pryanka & July 16, 2021 is IDR 45.1 trillion. This means that
Candra, 2020). there is a difference of IDR 17.73 trillion in the
Based on data from Purchasing Managers absorption of the tax incentive budget. However,
Index (PMI) for Manufacturing Indonesia, PMI the government would still provide an extension
Manufacturing Indonesia reached 49.5 points as of the tax incentive until the end of December
of December 2019 (Databoks, 2020). This figure 2021.
experienced a contraction to 45.3 points as of Based on data from the 2015 - 2019 Central
March 2020 (Rudiyanto, 2020). Then, this figure Government Financial Report (LKPP) that the
again experienced a significant contraction, receipt of Domestic PPnBM (Dalam Negeri
which was 27.5 points as of April 2020 (Databoks, PPnBM) in the National Budget or APBN posture
2020). Therefore, the government needed to has a slow trend since 2017 – 2019 (The Expertise
develop a strategy through the provision of tax Agency of the House of Representatives of the
incentives in the National Economic Recovery Republic of Indonesia, 2021). In addition, as
(PEN) program. Tax incentives are included in shown in the graph, the realization of PPnBM DN
one of the PEN programs that aim to support the reached Rp. 13.37 trillion in 2017. Meanwhile, in
business world, especially providing support to 2018, the realization of PPnBM DN decreased to
Micro, Small and Medium Enterprises (MSMEs) Rp. 12.72 trillion. Then, it decreased again to
and corporations (The Ministry of Finance of the Rp11.32 trillion in 2019. The same trend
Republic of Indonesia, 2020). happened to the realization of imported PPnBM
In 2020, the government has budgeted for the which also had a slow trend in 2020 due to
PEN program of Rp. 695.2 trillion. However, slowing import performance. This has existed
from the budget, only IDR 579.78 trillion was because global trade activities, demand for
realized or 83.4% of the ceiling budget that had imports of raw materials, and imports of capital
been absorb. This amount would be passed to goods have decreased, especially when social
2021 where the allocated budget would increase, distancing was enforced by the government.
which was IDR 699.43 trillion. Increasing the
budget allocation for the PEN program was as an
effort to accelerate the handling of the Covid-19
pandemic, especially through the provision of
vaccinations, maintaining and increasing
people's purchasing power (The Ministry of
Finance of the Republic of Indonesia, 2021). One
of the budget allocations for the PEN program is
for the business incentive. For the business Graph 1. Realization of PPnBM 2015-2019 (in
incentive sector with a ceiling of IDR. 62.83 trillions)
trillion or 8% of the budget allocation for the PEN Source: LKPP 2015-2019 in the Expertise Board of
program, one of the targetted program is the DPR RI (2021), “has been reprocessed by the
intended to provide incentives for the Sales Tax researchers”
on Luxury Goods (or Pajak Penjualan atas Barang The automotive industry is one of the
Mewah/PPnBM) for cars. industries that are given incentives by the
However, the tax incentives allocated by the government during the Covid-19 pandemic
government have not been fully absorbed. This is (GAIKINDO, 2021). This is because car sales
because there has been a gap between the tax dropped dramatically when the national

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Volume 6, Issue 2, Desember 2024 (717-809)
ISSN Online: 2685-3582
https://doi.org/10.14710/dialogue.v6i2.20653

economy plummeted, and many automotive PPnBM DTP. The government has issued several
industries closed temporarily. Data on vehicle Minister of Finance Regulations (PMK) related to
sales decreased by 48.35% in 2020. Therefore, the the PPnBM DTP incentive policy until the end of
government encourages an increase in 2021 as set out in the following table.
purchasing power by providing incentives for
Table 1. Mapping of Ministry of Finance Regulation (or Peraturan Menteri Keuangan/PMK)
Regulating PPnBM DTP

Regulation Effective Date

PMK No. 20/PMK.010/2021 concerning Sales Tax on Luxury Goods on 26 February 2021 –
Delivery of Taxable Goods Classified as Luxury in the Form of 1 April 2021
Certain Motorized Vehicles Borne by the Government for Fiscal Year
2021 (PMK No. 20/PMK.010/2021).
PMK No. 31/PMK.010/2021 concerning Sales Tax on Luxury Goods on 1 April 2021 –
the Delivery of Taxable Goods Classified as Luxury in the Form of 2 February 2022
Certain Motorized Vehicles Borne by the Government for Fiscal Year
2021 (PMK No. 31/PMK.010/2021).
PMK No. 77/PMK.010.021 concerning Amendments to PMK No. 30 June 2021 –
31/PMK.010/21 (PMK No. 77/PMK/010/2021). 2 February 2022

PMK No. 120/PMK.010/2021 concerning the Second Amendment to 13 September 2021 –

PMK No. 31/PMK.010/2021 (PMK No. 120/PMK.010/2021). 2 February 2022

has been further regulated in PMK No.

At the beginning of the provision of 31/PMK.010/2021.
incentives, taxes in the form of PPnBM DTP are Furthermore, the government released
intended for the delivery of certain vehicles regulatory changes related to the extension of the
(sedans or station wagons) with a capacity (load 100% PPnBM DTP incentive which is further
capacity) of cylinder below 1,500 cc and certain regulated in PMK No. 77/PMK.010/2021.
vehicles (other than sedans or station wagons) Changes of concern in PMK No.
with loading capacity cylinder below 1,500 cc. 77/PMK.010/2021 is regarding the period of
Furthermore, the government expanded the extension of the 100% PPnBM DTP incentive for
scope of certain vehicles and changed the local certain motor vehicles. Then, on September 13,
purchase requirements for certain vehicles that 2021, the government re-released PMK No.
received PPnBM DTP incentives. These 120/PMK.010/2021. The purpose of this
expansions and changes aim to increase people's regulation is to maintain enthusiasm and
purchasing power (or demand) in the vehicle maintain people's purchasing power in the motor
industry, in general automotive sector. The main vehicle industry sector to encourage and
goal is to encourage and to accelerate accelerate the recovery of the national economy.
macroeconomic recovery, as well as a mode of Changes that are of concern in this latest
support the motor vehicle industry which has regulation are regarding the period of extension
been affected by Covid-19. Therefore, as the of the 100% PPnBM DTP incentive for certain
practical support, the government formulated motor vehicles (sedans or station wagons) and
the provision of PPnBM incentives. This change certain motor vehicles (other than sedans or
station wagons) with spark-ignition motors with

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1 (one) system drive axle (4x2) for transportation significant positive impact on people's
of not more than 10 (ten) people with a maximum purchasing power to encourage national
cylinder load capacity of 1,500 cc, extended from economic recovery and support the sustainability
September to December 2021; PPnBM DTP 50% of the business world. Based on this explanation,
on certain motorized vehicles (other than sedans this research aims to, first, analyze the
or station wagons) for transportation of no more implementation of the PPnBM DTP incentive
than 10 (ten) people using spark-ignition engines policy for the automotive industry sector in
with 1 (one) drive axle (4x2) with a cylinder load Indonesia during the Covid-19 pandemic.
capacity of 1,500 – 2,500 cc, extended for Second, to analyze the government's
September to December 2021; PPnBM DTP 25% considerations in extending the PPnBM DTP
on certain motor vehicles (other than sedans or incentive policy.
station wagons) for transportation of no more
than 10 (ten) seater using spark-ignition engines METHODS
with 2 (two) drive axle (4x4) with a cylinder load This study uses a post-positivist approach
capacity of 1,500 – 2,500 cc, extended for because it relates to the problems taken with the
September to December 2021. aim of analyzing the implementation of the
Basically, studies related to tax incentives to PPnBM DTP incentive policy for the automotive
stimulate the economy are not new. Tax industry sector in Indonesia during the Covid-19
instruments as part of public policy are one of the pandemic and analyzing the government's
most popular choices in intervening in various considerations in extending the PPnBM DTP
conditions during the COVID-19 pandemic incentive policy. This is also further explained by
(Devereux, Güçeri, Simmler, & Tam, 2020). In Neuman (2014) that the post-positivist approach
addition to the context of the COVID-19 is to integrate deductive logic with appropriate
pandemic, the use of fiscal incentives, for empirical observations in terms of individual
example, the VAT subsidy instrument on the behavior to ensure and find probabilistic causal
distribution of 3 kg LPG cylinders laws that can be implemented in predicting
(Widyaningrum, 2012), fiscal instruments to general patterns of human activity. Meanwhile,
influence people’s behavior to use electric the data collection techniques used by the
vehicles (Dimitropoulos, van Ommeren, Koster, researchers were in-depth interviews and
& Rietveld, 2014; Li et al., 2019; Yan, 2018), even literature studies. The informants interviewed
related to emission control (Urrutia-Mosquera & consisted of representatives of relevant
Fábrega, 2021). stakeholders, namely representative from the
With the less optimize absorption of tax Directorate General of Taxes, the Directorate of
incentives as previously explained, the Tax Regulation 1, representative from the Fiscal
government has still renewed and extended Policy Agency, representative from the Ministry
PPnBM incentives until the end of 2021. of Industry, several representatives from Deputy
Therefore, further research is needed to analyse 1 for Macroeconomic Coordination and Finance
the implementation and challenges of at the Coordinating Ministry for the Economy,
implementing PPnBM DTP incentive policies representatives from from tax practitioners,
during the Covid-19 pandemic. This research is representatives from Gaikindo, several
expected to provide benefits for the government academics, several representatives from
to evaluate and make improvements to a more finance/taxation staff of business entities from the
appropriate tax incentive policy for the near automotive industry sector.
future. This is important to implement so that the
PPnBM DTP incentive policy can have a

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RESULTS AND DISCUSSION 34.29%. The contraction continued until the

The automotive industry is one of the fourth quarter of 2020. However, growth was
mainstay sectors that contribute significantly to recorded to experience a slowdown from a
the national economy. Among ASEAN countries, contraction of 29.98% to 18.98% in the third
Indonesia ranks second as the largest automotive quarter of 2020.
industry with 1,289,847 vehicles in 2019. Until
recently, there are 22 industrial companies of Graph 2. The Growth of Automotive Industry
four-wheeled motor vehicles or more in (in percentage)
Indonesia. In this case, the contribution of the
automotive industry for the national economy is
up tp IDR99.16 trillion for investment with a total
production capacity of 2.35 million vehicles per
year and absorb 38,390 direct workers.
Meanwhile, currently there are 26 two- and three-
wheeled automotive industry companies in
Indonesia with an investment value of IDR. 10.05
trillion, a production capacity of 9.53 million
vehicles per year, and direct employment of Source: The Ministry of Industry of the Republic
32,000 people (The Ministry of Industry of the of Indonesia (2021).
Republic of Indonesia, 2021). In addition, the
presence of the automotive industry has a wide In 2013, this industry had enormous potential
impact on more than 1.5 million people who because its growth rate had reached 14.95%.
work in the automotive industry sector. In this However, the growth rate only reached 2.4% in
case, the automotive industry sector is 2015. This caused the country's economic growth
considered to have an important and strategic to slow down to 4.88%. Furthermore, the growth
contribution. Therefore, the automotive industry of the automotive industry increased to 4.52% in
sector is included in the “Making Indonesia 4.0” 2016. Then, the figure declined again and there
road map and is given development priority in was a growth contraction of 3.43% in 2019 (The
the implementation of industry 4.0. Ministry of Industry of the Republic of Indonesia,
Motor vehicle products produced by 2021). As one of the sectors involved in “Making
Indonesia have passed the export market of 80 Indonesia 4.0”, the automotive industry focuses
countries. Furthermore, exports of Completely on occupying the main actor of ICE and EV
Build Up (CBU) vehicles reached 232.17 export player. However, automotive
thousand units or equivalent to IDR. 41.73 trillion manufacturers were forced to close their
in 2020. Meanwhile, shipments for Completely production during the Covid-19 pandemic. In
Knock Down (CKD) vehicles were 53.03 line with this, automotive demand also
thousand sets or worth IDR. 1.23 trillion and experienced a very sharp decline due to reduced
components were 61.2 million pieces or public demand. The impact of the Covid-19
equivalent to Rp. IDR 17.52 trillion (Gareta, 2021). pandemic has been felt by the automotive
The automotive industry has experienced a industry (The Ministry of Industry of the
growth contraction since the first quarter of 2019 Republic of Indonesia, 2021).
by 3.43%. The same thing also happened in the PPnBM policy in Indonesia is regulated in
first quarter of 2020 where there was a positive Law no. 42 of 2009 concerning the Third
growth of 4.64% and again experienced a rapid Amendment to Law no. 8 of 1983 concerning
contraction in the second quarter of 2020 of Value Added Tax on Goods and Services and

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Sales Tax on Luxury Goods (Law on PPN and produces the goods within the Customs Area in
PPnBM), which was last amended by Law no. 7 his business activities or work; and Taxable
of 2021 concerning the Harmonization of Tax imports which are classified as luxury items”.
Regulations which will take effect on October 29, The Covid-19 pandemic prompted the
2021. Meanwhile, regarding the implementing government to improve the national economy. In
regulations, it is regulated in PP. 1 of 2012 this case, to boost the productivity of the
concerning the implementation of Law no. 8 of automotive industry, as well as boost sales and
1983 concerning VAT and PPnBM As Amended competitiveness of the automotive industry
Several Times, most recently by Law no. 42 of affected by the Covid-19 pandemic, the
2009 which was later amended again with the PP government has issued various policies or
No. 9 of 2021 concerning Tax Treatment to stimulus for the automotive industry sector,
Support the Ease of Doing Business. namely PPnBM incentives for certain motor
Then, related to luxury goods in the form of vehicles. Initially, PPnBM DTP incentives will be
motorized vehicles, it is regulated in a derivative implemented in stages over nine months, namel7
regulation, namely PP No. 74 of 2021 concerning 100% PPnBM DTP incentives in the first stage,
Amendments to PP No. 73 of 2019 concerning 50% incentives in the second stage, and 25%
taxable goods classified as luxury in the form of incentives in the third stage. However, over time,
motorized vehicles subject to sales tax on luxury the initial scheme changed along with the
goods. Meanwhile, related to the technical enactment of the latest PMK. The PMK list
aspects, for example the types motor vehicles that regarding PPnBM DTP during 2021 is as follows.
are subject to PPnBM, are regulated in PMK No. a) PMK No. 20/PMK.010/21 with an effective
141/PMK.010/21 Concerning the Determination date of 26 February 2021 – 1 April 2021.
of Types of Motor Vehicles Subject to Sales Tax b) PMK No. 31/PMK.010/21 with effective date
on Luxury Goods and Procedures for Imposition, 1 April 2021 – 2 February 2022.
Granting, and Administration of Exemption, and c) PMK No. 77/PMK.010/21 with an effective
Refund of Sales Tax on Luxury Goods (PMK No. date of 30 June 2021 – 2 February 2022.
141/PMK.010/2021). Based on Article 5 Paragraph d) PMK No. 120/PMK.010/21 with an effective
(1) of the PPN and PPnBM Law mentions that date of 13 September 2021 – 2 February 2022.
PPnBM is imposed on:
“Supply of taxable goods classified as luxury
item carried out by the entrepreneur who

Table 2. The Differences Among Ministry of Finance Regulation Regarding Incentives on PPnBM DTP
During Year 2021

Note PMK No. PMK No. 31/PMK.010/2021 PMK No. PMK No.
20/PMK.010/2021 77/PMK.010/2021 120/PMK.010/20
21
Object Article 2 There are expansions in Article There are no amendments There are no
Sedan or station wagon 2, namely: to PMK No. amendments to
vehicle with diesel or Motor vehicles for 31/PMK.010/21 PMK No.
semi-diesel and cylinder transportation of less than 10 31/PMK.010/21
capacity up to 1,500 cc; seaters including drivers other
and than sedans or station wagons,

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Motor vehicles for the with diesel or semi-diesel with

transportation of less than one drive axle (4x2) and a
10 seaters including cylinder capacity of 1,500 cc –
drivers other than sedans 2,500 cc.
or station wagons, with Motor vehicles for the
diesel or semi-diesel with transportation of less than 10
one drive axle (4x2) and a people including drivers other
cylinder capacity of up to than sedans or station wagons,
1,500 cc. with diesel or semi-diesel with
two drive axles (4x4) and a
cylinder capacity of 1,500 cc –
2,500 cc.

Local purchase Minimal 70% Minimal 60% There are no amendments There are no
to PMK No. amendments to
31/PMK.010/21 PMK No.
31/PMK.010/21
Rate 100% for the tax period PPnBM payable as referred to There are the following There are the
March – May 2021 in Article 2 letters a and b that amendments. following
50% for the tax period June have met the requirements, amendments.
– August 2021. among others: PPnBM payable as
25% for the tax period 100% for the tax period April – referred to in Article 2 "PPnBM payable
September – December May 2021 letters a and b that have as referred to in
2021. 50% for the tax period June – met the requirements, Article 2 letters a
August 2021 among others: and b that have
25% for tax period September 100% for the tax period met the
– December 2021 April – May 2021 requirements,
100% for the tax period among others:
PPnBM payable as referred to June – August 2021 100% for the tax
in Article 2 letter c that have 25% for tax period period April –
met the requirements, among September – December May 2021
others: 2021 100% for the tax
50% for the tax period April – period June –
August 2021 PPnBM payable as August 2021
25% for tax period September referred to in Article 2 100% for tax
– December 2021 letter c that have met the period
requirements, among September –
PPnBM payable as referred to others: December 2021
in Article 2 letter d that have 50% for the tax period
met the requirements, among April – August 2021 PPnBM payable
others: 25% for tax period as referred to in
25% for the tax period April – September – December Article 2 letter c
August 2021 2021 that have met the
12.5% for the tax period requirements,
September – December 2021. PPnBM payable as among others:
referred to in Article 2 50% for the tax
letter d that have met the period April –
requirements, among August 2021
others:

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25% for the tax period 50% for tax

April – August 2021 period
12.5% for tax period September –
September – December December 2021
2021
PPnBM payable
as referred to in
Article 2 letter d
that have met the
requirements,
among others:
25% for the tax
period April –
August 2021
25% for the tax
period
September –
December 2021.
Administration a. Tax invoices are in There are changes related to There are no amendments There are no
accordance with the provisions on the to PMK No. amendments to
applicable regulations; administration of tax invoices. 31/PMK.010/21 PMK No.
and As explained in Article 6 31/PMK.010/21
b. PPnBM DTP realization number (2) that the tax invoice
report must be made with transaction
As regulated in Article 6 code 01; description of the type
paragraph (2) that the tax of goods at least includes the
invoice must be given the type, capacity of the contents
statement "PPnBM borne of the cylinder, numeric
by the GOVERNMENT number, engine number, and
OF EX PMK NUMBER the Harmonized System code
…/PMK.010/21". Then, in (HS Code); and the statement
paragraph (3) it is “PPnBM is borne by the
explained that the tax GOVERNMENT…% of EX
invoice reported in the PMK NUMBER
Periodic VAT Return in …/PMK.010/2021 VALUE OF
accordance with the Rp …”
provisions by the PKP
who makes the delivery of
motorized vehicles is the
realization of PPnBM DTP.

Source: PMK No. 20/PMK.010/2021, PMK No. 31/PMK.010/2021, PMK No. 77/PMK.010/202i dan PMK
No. 120/PMK.010/2021, processed by researchers.
Industry's KEP also underwent several changes
The Decree of the Minister of Industry (KEP during 2021. The description of the Minister of
Menperin) is a provision that supports PMK Industry's KEP is as follows.
regarding PPnBM DTP. The Minister of

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Table 3. Ministry of Industrial Affairs Regulation regarding PPnBM DTP

Note KEP-Menperin No. 169/2021 KEP-Menperin KEP-Menperin
No. 839/2021 No. 1737/2021
Local purchase Minimum 70% Minimum 60% No amanedments
Administrative Submisson on the following documents to the No amanedments No amanedments
obligation Director General of Metal, Machinery,
Transportation Equipment and Electronics
Industries.
a. Tax invoice in accordance with applicable
regulations;
b. PPnBM DTP realization report; and
c. Quarterly sales performance
No of vehicle types 21 types of vehichles 29 types of vehichles 36 types of vehichles
received benefit

Sumber: KEP-Menperin No. 169/2021, KEP-Menperin No. 839/2021 dan KEP-Menperin No. 1737/2021
(processed by the researchers)
a. Content of policy, representing all or part of
other dimensions so that it can be understood
The Fundamental Aspect of Public Policy
regarding who the perpetrators are, what is the
Analysis
context, and the process is the supporting
Basically, studies related to tax incentives to
content.
stimulate the economy are not new. Tax
1) Influencing interests, meaning that
instruments as part of public policy are one of the
interested actors have certain roles and
most popular choices in intervening in various
functions that can influence the successful
conditions during the COVID-19 pandemic
achievement of efficient policy
(Devereux, Güçeri, Simmler, & Tam, 2020). In
implementation (Viennet & Pont, 2017).
addition to the context of the COVID-19
2) Types of benefits, meaning that the benefits
pandemic, the use of fiscal incentives, for
received are related to how and to what
example, the VAT subsidy instrument on the
extent the implementation of the policy
distribution of 3 kg LPG cylinders
results in changes for several parties
(Widyaningrum, 2012), fiscal instruments to
(targets).
influence people’s behavior to use electric
3) The degree of change desired, meaning that
vehicles (Dimitropoulos, van Ommeren, Koster,
the success or failure of policy
& Rietveld, 2014; Li et al., 2019; Yan, 2018), even
implementation can be seen from the
related to emission control (Urrutia-Mosquera &
behavioral changes resulting from the policy
Fábrega, 2021).
target.
In analyzing the implementation of tax policy as
4) The place of decision making, according to
a public policy, public policy analysis become an
Grindle in (Mubarok et al., 2020), policy
important tool. The modified triangle of policy
implementation is influenced by the
analysis model of public policy consists of four
position of the policymaking actors, and is
main variables, namely content, context, process,
considered more difficult if the positions of
and achievements (Mubarok, Zauhar, Setyowati,
the actors are separated, both
& Suryadi, 2020).
geographically and organizationally.

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5) Program implementers, according to increase the probability of communication

Grindle in (Mubarok et al., 2020), policy failure because the possibility of distortion
implementation is influenced by the of information will be very large. So, the
capacity of the policy implementing actors more distorted the information is, the more
or how many agencies are involved. Policy intensive coordination is needed.
implementers must have the capability to c. Context of policy
succeed in achieving and implementing a Context analysis is an analysis of the context in
policy. which the policy applies. Some of these aspects
6) The resources used, that is, the resources include those proposed by Edward and Grindle,
will facilitate the implementation of a policy. namely:
Adequate and effective resources are one of 1) The power, interests, and strategies of the
the determining factors for the success of actors involved, if there are parties who are
policy implementation (Viennet & Pont, considered to have an interest in the policy,
2017). then that party will make a strategy to win
b. Process of policy, emphasizes discussion the competition with its strength so that that
related to the scope related to the way in which a party can enjoy the results of the
policy is identified, formulated, and the strategy implementation of the policy.
proposed. There are several aspects adopted 2) Characteristics of institutions and
from Edward III in (Mubarok et al., 2020), authorities, meaning that the existence of
namely: political elite support can influence policy
1) Derivatives/policy resources, meaning that implementation because policy
human resources or other resources will implementers can implement these policies
facilitate a policy to be implemented. and achieve predetermined goals.
Adequate resources and effective use of 3) Compliance and responsiveness of actors,
resources will be considered as one of the meaning that if the policy content is
success factors in policy implementation acceptable, then policy implementation will
(Viennet & Pont, 2017). be easier to implement. This can be seen on
2) The attitude of the implementer how the response of the party respond,
(tendencies)/behavior, meaning the desire, whether the existence of this policy, the
willingness, or tendency of policy makers to party feels helped or whether the party takes
implement the policy seriously so that the advantage of the implemented policy
policy objectives can be achieved. If the (Viennet & Pont, 2017).
policy is to be implemented effectively and d. Policy achievements
efficiently, the policy implementers must This aspecy is inteded to identify the
not only know what needs to be achievements that have been obtained in policy
implemented and be capable of implementation, taking into account aspects of
implementing the policy, but also intend to the perceived impact on policy objectives and the
implement the policy. level of change that has been achieved.
3) Bureaucratic structure, meaning that there
are several aspects in the bureaucratic Analysis of the Implementation of Sales Tax
structure, namely division of authority, Incentives on Luxury Goods by the
relationships between organizational units, Government for the Automotive Industry
and others. Sector in Indonesia
4) Communication, meaning that a fragmented Aspects of Content of Policy
or fragmented bureaucratic structure can

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The provision of PPnBM DTP incentives is

part of government expenditure to spur
However, based on the results of an interview
economic growth. This is because the with the Tax Regulation 1 (PP1) Section of
government sees that the middle class still has
Industrial VAT 2 of the Directorate General of
savings which have even increased during the Taxes, the provision of incentives for PPnBM
Covid-19 pandemic. Public savings during the
DTP is a form of government decision after
Covid-19 pandemic grew above 10% considering the socioeconomic conditions
(Agustiyanti, 2020). Following the table 4 below,
occurred during the pandemic. The Covid-19
it is explained that the savings growth rate pandemic caused the Enforcement of
increased during the Covid-19 pandemic in 2020,
Community Activity Restrictions (or
increased by 4.4% to 10.9% compared to 2019 Pemberlakuan Pembatasan Kegiatan
which had a savings growth rate of 6.5%
Masyarakat/PPKM). The existence of PPKM
(Indonesia Deposit Insurance Corporation, 2020)
resulted in declining economic conditions where
and spread across various types of categories.
the community, especially the lower middle class
Table 4. The Increase of Saving Growth 2016-
faced difficult conditions, therefore the
2020
government carried out a national economic
Year Nominal (IDR in Growth (yoy)
Triliun)
recovery program. One of the national recovery
2020 6.737 10,9% programs is the PPnBM incentive for certain cars
2019 6.077 6,5% for the automotive industry. Therefore, in this
2018 5.704 6,4% case there has been an anomaly, whichwas on the
2017 5.363 9,5% one hand of the community, especially the lower
2016 4.900 9,5%
middle class, is facing difficult conditions, but on
Source: Indonesia Deposit Insurance
the other hand the middle class is encouraged to
Corporation (2020), further processed by the
consume so that they desire to spend their money
researcher
to accelerate the economic growth.
Therefore, the government expanded the
Furthermore, the distribution of savings during
object of PPnBM DTP as regulated in PMK No.
2020 can be described as follows.
31/PMK.010/2021. The automotive industry is
one of the major industries that significantly has
Table 5. Amount of Savigs Distribution 2020
influenced the economy with its capital-intensive
Saving Group Nominal (IDR Growth
Triliun) per (ytd) and labor-intensive characteristics. The
Des automotive industry has contributed an average
N ≤ Rp100 mio 954 8,1% of 20% to the national GDP and absorbs 17.5
IDR 100 mio ≤ N 379 7,7% million workers. Meanwhile, exports from the
≤ IDR 200 mio
automotive industry accounted for around 80.3%
IDR 200 mio ≤ N 607 8,8%
≤ IDR 500 mio of the total national exports of US$163.3 billion in
IDR 500 mio ≤ N 532 8,6% 2020 (GAIKINDO, 2021). It is expected that this
≤ IDR 1 mio incentive would be able to maintain production
IDR 1 bio ≤ N ≤ 462 9,3%
activities where labor is an important aspect for
IDR 2 bio
IDR 2 bio ≤ N ≤ 596 5,7% all economic groups. When car production
IDR 5 bio increases, the need for car components obtained
N > IDR 5 bio 3.207 14,2% from the automotive support industry also has
Source: Indonesia Deposit Insurance the potential to increase. So, this policy should be
Corporation (2020), further processed by the also able to provide a stimulus to the automotive
researcher

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supporting industry. Furthermore, the organizationally. In this case, the implementation

implementation of this PPnBM DTP incentive of the PPnBM DTP incentive policy has fulfilled
policy has caused several manufacturing sub- the aspect of the place of decision making based
sectors to experience economic growth of 3.69% on two reasons, namely the existence of the
in 2021 (The Ministry of Industry of the Republic policy makers of PPnBM DTP incentives in one
of Indonesia, 2021). geographic area and one organization.
In addition, according to the Taxable The existence of policy makers of PPnBM DTP
Entrepreneurs (or Pengusaha Kena Pajak/PKP) incentives are in one geographic area and one
from the automotive industry perspective, the organization. First, the existence of policy-
implementation of the PPnBM DTP policy for the making actors (BKF and DGT) on PPnBM DTP
automotive industry sector can also stimulate incentives are located in one geographic area,
consumers or people who initially did not want namely the Special Capital Region of Jakarta
to buy a car to turn into wanting to buy a car. This (DKI Jakarta) with each located in South Jakarta
is marked by an increase in the number of sales and Central Jakarta. Second, the existence of
of certain cars in 2021 compared to conditions in policy makers for PPnBM DTP incentives are in
2020. Based on Gaikindo data, the number of one organization, namely the Ministry of
domestic car sales in 2020 was 532,027 units and Finance. The position of policy-making actors
in 2021 it was 887,202 units. This figure increased within the geography and organization will
significantly, although the number of car sales in facilitate policy implementation. This is because
domestic was not as high as in 2019 or before the decision-making has a very crucial role in
Covid-19 pandemic which reached 1,030,126 implementing a policy, so it is mandatory to
units. Although this policy also underwent know where the decision-making location of a
changes related to the PPnBM DTP rate given, for policy is (Subarsono, 2006).
example an extension of the 100% incentive rate The implementing actors of this incentive
which was extended until the end of 2021, this policy are the PKP of the automotive industry
change did not become a significant problem for and the DGT as the party that supervises the
the automotive industry because it was in order administration or fulfillment of tax obligations
to maintain automotive industry sales during the carried out by the PKP of the automotive
Covid-19 pandemic. This has directly industry. PKP who take advantage of this
proportional to what was said by Grindle in incentive must meet several administrative
Mubarok et al. (2020) that the success or failure of requirements as regulated in PMK No.
policy implementation can be seen based on 20/PMK.010/2021 jo. PMK No. 120/PMK.010/2021
changes in behavior resulting from the party who as the latest regulation in 2021, that is providing
is the target of the policy. This will lead to the tax invoices and PPnBM DTP realization reports.
achievement of the goals that have been set at the Tax invoices that must be reported are made
beginning, that is maintaining enthusiasm and using transaction code 01 and include some
maintaining public purchasing power for vehicle information. Until recently, the
vehicles to encourage national economic implementation of PPnBM DTP incentives and
recovery. the supervision carried out by the DGT have not
According to Grindle in Mubarok et al. (2020), encountered any significant obstacles. In line
policy implementation is influenced by the with the opinion described by Grindle in
position of policy-making actors. Furthermore, Mubarok et al. (2020) that the capability of policy
policy implementation is considered more implementing actors is important in
difficult if the existence of the actors concerned is implementing policies.
separated, both geographically and

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Regulations are made by the Ministry of of Industry which expects vehicles to have low
Finance, in this case the Fiscal Policy Agency (or emissions in the future. In this case, there is
Badan Kebijakan Fiskal/BKF). In this aspect, there discretion by the government as the party
are adequate resources to support the implementing the policy as well. In line with
implementation of the PPnBM DTP incentive Edward III's theory in Winarno (2007) that
policy. Adequate resources and applied implementers have a lot of discretion in
effectively are one of the tools for determining the implementing policies. This means, after the
success of policy implementation (Viennet & Covid-19 pandemic and economic conditions
Pont, 2017). BKF has considered the provision of have improved (recovered), the government will
PPnBM DTP incentives for the automotive return to the initial road map of the Ministry of
industry sector, one of which is from a macro Industry. This is where tax as a regular end
perspective. This means that it is seen which function.
sectors are most affected by the Covid-19 There have been several updates throughout
pandemic and incentives will be given to 2021. In PMK No. 20/PMK.010/2021, certain
industrial sectors that have negative economic motor vehicles that receive PPnBM DTP
growth rates. In this case, the automotive incentives are vehicles with a cylinder capacity of
industry sector has a negative economic growth less than 1,500 cc. However, an anomaly occurred
rate identified by a contraction of 2.07 (yoy) (The as described in the previous explanation. Thus, if
Ministry of Industry of the Republic of Indonesia, the object of PPnBM DTP is only limited to
2021). certain vehicles with a maximum cylinder
capacity of 1,500 cc, the implementation of the
Aspects of Process of Policy
policy will not encourage the middle class to
In formulating a policy, the Fiscal Policy
spend their money. Therefore, the object was
Agency (BKF) refers to several tax incentive
expanded in PMK No. 31/PMK.010/2021 and
policies that have been carried out by countries in
allow the decrease in local purchases to a
the world to restore the economy through the
minimum of 60%. It is expected that the
OECD Data Questionnaire. In this case, the
multiplier effects and regulated functions also
PPnBM DTP incentive policy is in line with the
come into play. Meanwhile, if there is a proposed
tax policy in Korea that took effect in March 2020;
revision of provisions due to implementation
the tax rate reduction for private consumption
that is not in accordance with the conditions in
taxes for vehicles to encourage public
the field from the Ministry of Industry and/or
consumption (OECD, 2020). BKF in determining
PKP for the automotive industry, the Ministry of
how much the PPnBM DTP tariff is, who can take
Finance acts to direct these adjustments so that
advantage of the PPnBM DTP incentives, and
the regulatory objectives are achieved.
what are the tax objects has been in coordination
Referring to information from the Fiscal
with the Ministry of Industry and the
Policy Agency through interviews, he said that in
coordinating ministry for the Economy. This is in
the formulation of policies they considered the
line with the theory by Viennet and Pont (2017)
regulation harmonization where the
that adequate resources and effective use of
harmonization for the PMK level is at the
resources will be considered as one of the success
Ministry of Law and Human Rights
factors in policy implementation.
(Kemenkumham). In this case, the Ministry of
This PPnBM DTP incentive policy is only a
Finance is obliged to make records in the
stepping stone and is short term. Bearing in
harmonization, for example regarding the
mind, the PPnBM DTP incentive policy is
administration of PPnBM DTP assigned to whom
contrary to the road map issued by the Ministry
and who is the proxy who records the use of the

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PPnBM DTP incentive budget. In fact, the Then, DGT also conducted socialization to the
Cabinet Secretary is also involved, which is PKP of the automotive industry and Gaikindo.
authorized to prepare and coordinate the This is important, because the only direct
implementation of harmonization related to this communication between the government and the
incentive policy whether it is in line with the community is during the socialization process
president's directives or not. (Yudarwati & Gregory, 2022). DGT conducts
There are several organizational units various socializations to help taxpayers fulfill
involved in implementing this policy, namely the their tax obligations so that the stated objectives
Ministry of Finance (BKF and DJP), the Ministry of the PMK can be achieved.
of Industry, the coordinating minister for the
Economy, Gaikindo, and automotive industry Aspect Context of Policy
business players, as well as the Ministry of Law This implementation is also a government
and Human Rights, DPR, BPK, and the Cabinet strategy to restore the economy by increasing
Secretary. As explained by the informants that people's purchasing power on certain motorized
the Ministry of Finance will accept incoming vehicles. This policy is undertaken so that
proposals from the related entities/institution industries can survive in the midst of the Covid-
which in this case is the Ministry of Industry, 19 pandemic. It also be expected that the negative
then discuss and consider the functions and impacts of the Covid-19 pandemic, such as
duties of the Ministry of Finance, then approve increasing unemployment and reducing
the proposal in the form of PMK. During the production capacity by industries can be
process, the Ministry of Industry will provide a minimized. This is in line with what was
Certificate (or Surat Keterangan) regarding the explained by Edward and Grindle in Mubarok et
criteria for the automotive industry for certain al. (2020) that the implementation of the policy is
vehicles that can be stimulated by the PPnBM said to be successful if the parties involved are
DTP incentive. This is in line with the theory considered to have an interest so that those
stated by Edward III that policy implementation parties can enjoy the results of the
is effective because the bureaucratic structure is implementation of the policy. In this case, the
efficient. In this case, there are several aspects of automotive industry is the actor who can take
the bureaucratic structure in the implementation advantage of the PPnBM DTP incentives and the
of the PPnBM DTP incentive policy, for example DGT as the party that monitors the
the bureaucratic structure, the division of administration of the implementation of the
authority, and the relationship between PPnBM DTP incentive policy. The result is an
organizational units. increase in motor vehicle sales. This is also
Communication takes place both internally directly proportional to the idea expressed by
and externally. Communication and Grindle in Subarsono (2006) that policy
coordination related to the implementation of the implementation becomes easier if the
PPnBM DTP incentive policy is carried out implementation of the policy provides benefits or
between ministries/agencies. In this case, as benefits to a number of parties.
explained by the Directorate General of Taxes There are no significant obstacles in
that the PKP of the automotive industry through implementing the PPnBM DTP incentive policy.
Gaikindo communicates and coordinates with This is due to the communication and
the Ministry of Industry and which will later socialization carried out by Gaikindo to the
convey suggestions, input, ideas, and opinions to automotive industry, Account Representatif of
the Ministry of Finance. the Tax Policy Office (AR KPP) to the automotive
industry, or a combination of the three.

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Therefore, the business actors sufficiently 1,030,126 units. In addition, due to the growth of
understand how to take advantage of the PPnBM the component industry in Indonesia, around
DTP incentives, they always update and follow 1,550 component industry companies from tier 1
the latest regulations related to the automotive and tier 3 are able to absorb as many as 1.5 million
industry. workers. Then, based on the provisional
As regulated in PP No. 74 of 2021, tax base to realization report of the 2021 APBN, the total
calculate PPnBM payable can be obtained from realization of PPnBM DTP according to the 2021
the selling price of the motor vehicle. PPnBM is Central Government Financial Report (LKPP) is
collected using the selling price from the IDR 4,916,284,423,265. This causes the national
manufacturer to the distributor. Meanwhile, the economic growth rate to reach 5.02% (yoy) in
selling price from distributors to end customers 2021. Therefore, the PPnBM DTP incentive policy
is not monitored, so this could be a potential tax can be said to be successful in encouraging
problem. In this case, the responsive automotive national economic recovery, namely in terms of
industry responds to this by ensuring the demand followed by an increase in supply
distributors that the selling price to end (Habibah & Subagyo, 2022). This is in line with
customers does not exceed the existing the principle of tax policy, namely economic and
provisions so that the transactions carried out are growth efficiency. In addition, this is directly
still classified as fair prices. proportional to what is explained by Viennet and
In addition, the research findings also explain Pont (2017) that the achievements and results
that tax officials in the automotive industry provided by the policy are in accordance with the
already understand this PPnBM regulation. needs that exist in society to be an element of
Although in the implementation there are urgency in the success of policy implementation.
administrative errors, this can be communicated
properly between the DGT and the automotive Analysis of the Extension of the Sales Tax
industry. In this case, socialization plays a very Incentive Policy on Luxury Goods Borne by the
important role in supporting the implementation Government for the Automotive Industry
of the PPnBM DTP incentive policy so that the Sector in Indonesia
level of compliance and responsiveness of the In terms of social considerations, the
automotive industry can increase and the goals extension of the PPnBM DTP incentive for certain
that have been set can be achieved. This is in line cars 100% is a form of request from business
with what Viennet and Pont (2017) explained that actors which has been granted by the
a good level of compliance and responsiveness government. According to Dunn (2011),
will make policy implementation easier to responsiveness is related to how far a policy can
implement. answer the needs, preferences, or values of
certain community groups. This is done because
Aspects of Policy Achievement the PEN budget for PPnBM DTP incentives has
The implementation of the PPnBM DTP still considered sufficient. Then, to maintain sales
incentive policy has succeeded in maintaining of certain motor vehicles which have improved
enthusiasm and maintaining people's purchasing considerably when compared to the same period
power for motorized vehicles. Furthermore, the in 2020, the existance of the policy is needed. In
number of sales in 2021 which reached 887,202 addition, an extension of the PPnBM DTP
managed to increase compared to the number of incentives by 100% borne by government was
sales in 2020 which reached 532,027. However, also carried out to maintain enthusiasm people to
the number of sales in 2021 is not equivalent to buy motor vehicles.
the sales conditions in 2019 which sales reached

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Then, in terms of economic considerations, in 2021 when compared to conditions in 2020

the extension was due to the domino effect that Meanwhile, the realization of tax payments from
emerged as described in the section on types of the car sales sector on PPN and PPnBM in 2021
benefits. This domino effect can reduce the has increased when compared to conditions in
occurrence of layoffs. Therefore, this situation 2020, except for the New Car Retail Trade
can reduce the number of unemployed people business group. Then, there is also a tax payment
affected by the Covid-19 pandemic. This is in line from the car sales sector on Article 25/29
with the theory presented by Bintari and Corporate Income Tax, although the majority of
Pandiangan (2016) that the magnitude of policy the amount is not as big as in 2019 and 2020. One
involvement in solving social problems is very of the reasons for this is because the refund is
important in implementing these policies. greater than the taxpayer's payment (for those
Realization of tax payments from the car sales whose tax payments are negative). Overall,
sector on the automotive Income Tax (Pajak however, the realization of tax payments from
Penghasilan/PPh) Article 22 in the New Car the car sales sector in several automotive
Wholesale Business Group, Used Car Wholesale supporting industries has increased.
Trade, Used Car Retail Trade, and the Four or
More Wheel Motor Vehicle Industry will increase
Table 6. Realization of Tax Payments from the Car Sales Sector (Data per June 2022)

Business Field Classification Code Year

(KLU) and Tax Obligation 2019 2020 2021
45101. New Car Wholesale: 5.632.073.437.451 3.361.262.254.781 4.533.936.815.235
PPh Art. 22 Autmotive 199.818.063.776 101.715.614.778 170.918.745.623
PPN & PPnBM 4.379.994.894.257 3.509.001.172.426 4.626.898.542.989
PPh Art. 25/29 1.052.260.479.418 -249.454.532.423 -263.880.473.377
45102. Used Car Wholesal: 16.439.401.095 17.035.922.782 41.524.341.823
PPh Art. 22 Automotive 1.854.546
PPN & PPnBM 12.268.198.779 13.352.113.146 38.977.345.056
PPh Art. 25/29 4.171.202.316 3.683.809.636 2.545.142.221
45103. New Car Retail Trade: 1.149.805.267.177 955.245.838.172 719.004.331.671
PPh Art. 22 Automotive 1.078.458.664 343.167.214 303.883.910
PPN & PPnBM 957.775.864.336 919.161.562.651 742.818.449.939
PPh Art. 25/29 190.950.944.177 35.741.108.307 -24.118.002.178
45104. Used Car Retail Trade: 81.433.091.869 52.915.093.255 251.049.200.775
PPh Art. 22 Automotive 15.554.530 395.089 5.893.950
PPN & PPnBM 55.615.193.082 38.399.604.845 249.345.480.882
PPh Art. 25/29 25.802.344.257 14.515.093.321 1.697.825.943
29100. Industry of Four or More 9.847.917.107.437 2.734.177.935.795 3.500.933.137.228
Wheeled Motor Vehicle:
PPh Art. 22 Automotive 661.391.832.099 302.285.184.873 543.017.260.444
PPN & PPnBM 7.329.832.238.640 2.157.029.701.104 3.803.935.804.016
PPh Art. 25/29 1.856.693.036.698 274.863.049.818 -846.019.927.232
Total 16.727.668.305.029 7.120.637.044.785 9.046.447.826.732
Sumber: Collected Written Proposed data to PPID Kemenkeu (2022), “reprocessed”

In addition, to the increase in the number of situation. This is because the production process
motor vehicle sales, derivative industries for motor vehicles requires components made by
(supporting industries) from the automotive supporting industries, such as spare parts,
industry were also helped to recover the mirrors, and so on. When the number of sales

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increases, the amount of production also government will return to the Ministry of
increases. This domino effect can reduce the Industry's initial road map that focuses on low-
occurrence of layoffs. Therefore, this situation is emission vehicles. There is smooth
able to reduce the number of unemployed people communication between the PKP of the
affected by the Covid-19 pandemic. This is in line automotive industry, Gaikindo, the Ministry of
with the theory presented by Bintari and Industry, and the Ministry of Finance. Gaikindo
Pandiangan (2016) that the magnitude of policy and the Ministry of Industry can provide input,
involvement in solving social problems is very ideas, and opinions to the Ministry of Finance.
important in implementing these policies. The implementation of the PPnBM DTP incentive
policy has succeeded in maintaining enthusiasm
CONCLUSION and maintaining people's purchasing power for
The implementation of the PPnBM DTP motorized vehicles.
incentive policy for the automotive industry in The government's consideration in extending
Indonesia during the Covid-19 pandemic was the PPnBM DTP incentive policy, especially for
sufficient in accordance with the regulations the PPnBM DTP incentive of 100% comes from a
stipulated in 2021. In its implementation, an social perspective, this policy is expected to
anomaly occurred; on the one hand, the maintain public enthusiasm for buying certain
community, especially the lower middle class, motor vehicles and a form of request from the
faced difficult conditions, but on the other hand, automotive industry PKP to maintain sales of
the middle class was encouraged to spend their certain motorized vehicles that have already been
money to accelerate economic growth. sold. quite improved when compared to the same
The benefits of this policy, for the producer period in 2020. Meanwhile, in terms of economic
side, there is a multiplier effect, for example considerations, there are several domino effects
helping to maintain the life of the declining arising from the implementation of this PPnBM
automotive supporting industry. Meanwhile, incentive policy, for example reducing the
from the consumer perspective, the occurrence of layoffs so as to reduce the number
implementation of this incentive policy is able to of unemployed who are affected by the Covid-19
encourage public interest in buying cars. The pandemic.
existence of local purchase provisions causes the The government should regulate or supervise
automotive industry to have to buy local vehicle the selling price of certain motor vehicles from
partitions of at least 60% of the components used distributors to end customers so that transactions
and stimulate consumers or people who that occur are still classified as fair prices and
originally did not want to buy a car to turn into selling prices from distributors to end customers
wanting to buy a car. are not too expensive, and can prevent potential
The policy makers are located in DKI Jakarta tax problems in the future, for example the
and are under the coordination of the Ministry of difference in VAT. This is because if the price is
Finance, thus facilitating the implementation of too high, the goods may be quite challenging to
this PPnBM DTP incentive policy and sell. In addition, the purpose of tax incentives,
implementation does not experience significant which initially can make the selling price to end
obstacles. In addition, there are adequate customers cheaper than it should be. The real fact
resources to support the implementation of this in the market would still be expensive if the
incentive policy. BKF in formulating this policy selling price was too expensive because lack of
refers to the policies of other countries contained field supervision.
in the OECD Data Questionnaire, namely South
Korea. There is government support so that the
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