Indonesia has announced new measures to encourage sales of domestically produced and imported electric vehicles (EVs) to promote their use as well as attract investment in the domestic electric vehicle industry.
Indonesia has issued a policy to encourage the use and development of electric vehicles
These detailed incentives are a continuation of the tax incentive plan announced in December 2023 for imported electric vehicles and domestically produced electric vehicles in the coming years.
According to new regulations announced late on February 20, Indonesia will eliminate special consumption taxes on electric vehicles in fiscal 2024 and import taxes until the end of 2025.
The new regulations will also reduce value-added tax to 1% from 11% for electric vehicle buyers this year, extending a tax break that expired at the end of 2023. The government said the incentives are intended to The purpose is to stimulate domestic demand for electric vehicles, while attracting investment from automobile manufacturers.
According to Deputy Minister for Coordination and Supervision of Electric Vehicle Development, Mr. Rachmat Kaimuddin said, many electric vehicle manufacturers have revealed their plans to export electric vehicles to Indonesia since the government announced its intention to offer incentives. .
Recently, BYD, a Chinese electric vehicle manufacturer, revealed three completely battery-powered electric vehicle models that they plan to sell in Indonesia. According to Mr. Rachmat, “the hope is that these efforts can create more products and make them more affordable.”
The government aims to domestically produce 600,000 electric vehicles by 2030. This number will be more than 100 times the number sold in Indonesia in the first half of 2023.
Indonesia also plans to become a global electric vehicle production center by taking advantage of its huge reserves of nickel, an important material for electric vehicle battery production.
Source: BNews
