Government to Change Electric Vehicle Incentive Rules, Minister Says
- Dok: HMID
Jakarta – For accelerating the development of the electric vehicle (EV) ecosystem in Indonesia, the government recently issued a regulation in the form of incentives, the amount of which is adjusted according to the type of transportation equipment.
Minister of Industry, Agus Gumiwang Kartasasmita announced that the government plans to change the regulation.
Adjustments are needed to make it easier for people to switch to emission-free and environmentally friendly vehicles.
Menteri Perindustrian, Agus Gumiwang Kartasasmita
- Kemenperin
The first step will be to evaluate the government assistance program. Minister Kartasasmita said that the previous requirement that limits the purchase of two-wheeled vehicles based on the Population Identification Number (NIK) will be abolished.
"So those who get government assistance for the purchase of two-wheeled vehicles based on Population Identification Number can only buy one electric motorcycle," the Minister said at the Presidential Palace Jakarta, on Monday.
In addition, the government will also evaluate the value-added tax (VAT) for battery-based four-wheeled electric motor vehicles, which is currently set at one percent.
"The participants are only Wuling and Ioniq 5 (Hyundai). The evaluation, later the government will see how to make it easier, including restitution,"
In order to accelerate the electric vehicle ecosystem, the government will also relax the provisions regarding the Domestic Component Level (TKDN) of electric cars.
The original TKDN target of 40 percent in 2024 will be changed to 2026. This aims to provide a greater opportunity for the industry to prepare the supply of batteries, which is a major component in electric vehicle.
"Achieving 40 percent TKDN is not necessarily in 2026, it could be sooner because it depends on the readiness of our industry to supply batteries. Because, the battery is the largest component of electric vehicles, around 40-50 percent of the components are in the battery, so it could be faster," Minister Kartasasmita explained.
