Jakarta. Honda Prospect Motor, a local car distribution arm of the Japanese automotive giant, has announced the price for its latest hatchback in Indonesia slated for delivery this week, taking advantage of the government's generous tax cut. 

The company said Honda City Hatchback RS would be available at dealers across Indonesia on Thursday, with price started at Rp 289 million ($19,900) for a version with 6-speed manual transmission. The version with CVT transmission came at Rp 299 million. 

Honda said the price has accounted for the government's luxury tax (PPnBM) relaxation scheme. 

"Honda always strives to provide more value for consumers, with products that offer various advantages and advanced features, value for money prices, and low operating costs," Yusak Billy, business innovation and sales and marketing director of Honda Prospect Motor, said in a statement last week. 

"We also thank consumers who have been very enthusiastic about placing orders and waiting for the delivery of this car; we will focus on carrying out the delivery process as soon as possible to consumers in Indonesia," Yusak said. 

The company aimed the hatchback — which comes with a remote engine start, one push ignition system, cruise control, audio steering switch, hands-free telephone switch with voice recognition, and a multi-angle rearview camera — at younger customers market. 

Under the scheme, the government cut the luxury tax by 100 percent for a car with an engine capacity of up to 2,500-centimeter cubic (cc) from April 1 to May 31. The discount would drop to 50 percent From June to August and 25 percent from September to December

The government expected the tax incentives would boost Indonesia's car sales, which has been decimated by the Covid-19 pandemic last year.