SAIC Urges Ministry of Industry to Extend Electric Vehicle VAT Incentive
11 October 2025, 09:00 WIB
BYD and VinFast demonstrate their commitment to the government by establishing a factory in Subang, West Java.
By Satrio Adhy
Take the example of the approach taken by Geely Motor Indonesia and Era Industri Otomotif (Xpeng). They chose to partner with a local assembler, Handal Indonesia Motor (HMI).
Handal itself is known for having served a number of Chinese manufacturers, especially those selling EVs in the country.
The Ministry of Industry claims Geely has invested Rp 42 billion in Indonesia, while Xpeng's investment is slightly larger, reaching Rp 76 billion.
“Then, two companies are expanding their production capacity, namely PT National Assemblers and PT Inchcape Indomobil Energi Baru,” Tunggul continued.
As a reminder, National Assemblers oversees several brands, ranging from Aion, Maxus, Citroen to VW.
They are said to be investing up to Rp 550 billion, with a production capacity target of 61,000 units.
Next, Inchcape Indomobil Energi Baru with the GWM Ora brand intends to invest up to Rp 20 billion. They have set a production target of only 4,000 electric car units.
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In a meeting in Shanghai, SAIC requested the Ministry of Industry to continue the government-borne VAT incentive for electric cars.