Electric Vehicle Price War Heats Up, Gaikindo Issues This Warning

For your information, the policy requiring manufacturers who market CBU products and utilize electric car incentives to invest is stipulated in the Minister of Investment Regulation (Permeninves) No. 6 of 2023.

Article 2 paragraph (1) states that automotive manufacturers have the opportunity to obtain incentives for exemption from import duties and Luxury Goods Sales Tax (PPnBM) borne by the government for the import of a certain number of CBU electric cars.

These incentives are given to manufacturers who are committed to or have already invested in building electric car factories in Indonesia.

For example, BYD is still marketing CBU products, from the Atto 1 to the Denza D9.

Photo : Courtesy

This assistance also applies to conventional car manufacturers who intend to switch production to electric four-wheeled vehicles.

The period for granting these import duty and PPnBM-free incentives is valid until the end of December 2025.

Manufacturers who receive incentives must fulfill their commitment to produce electric cars in Indonesia in the same quantity and with the same specifications as the imported electric cars, with the provision of being ready for production by December 31, 2026.

Production must start by the end of 2027 at the latest and must meet the Local Content Level (TKDN) target.