Speaking at the Indonesia International Motor Show 2024 in Jakarta on Thursday (15/2/24,) Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, said that the government has prepared incentives for business players seeking to invest their capital to build electric vehicle (EV) factories in Indonesia, according to reporting from Antara News.
Kartasasmita said that Indonesia is currently home to the EV factories of four foreign automotive companies: Wuling, DFSK, Hyundai, and Chery but production capacity is still low as they can only produce 100,000 EVs per year.
The minister then noted that the existence of EV factories is essential to helping Indonesia meet its target of market absorption of eco-friendly vehicles and compete at the international level.
He further noted that the Ministry of Industry would offer the incentives while continuing the implementation of the EV tax incentive program without neglecting the need to achieve the domestic component level (TKDN) target, according to Antara News.
“We will continue to implement the program while continuing to pursue the TKDN target. However, we will now focus more on the local component of heavy batteries,” he explained.
Antara News says that the Ministry of Industry has set targets for electric car sales, with 400,000 and 600,000 units expected to be sold by 2025 and 2030, respectively.
Through the Investment Minister’s Regulation No. 6 of 2023, the Indonesian Government offers an exemption of import duty and sales tax on luxury goods related to the imports of electric cars in certain quantities.
The regulation is targeted at EV producers willing to develop their businesses in Indonesia.
Source: Antara News
Stock Photo by Hyundai Motor Group on Unsplash
