BYD Emphasizes the Importance of Consistent EV Regulations to Attract Investors

KatadataOTO – The era of electrification makes Indonesia a potential market for many foreign manufacturers, especially from China. 

However, according to BYD (Build Your Dreams), there are still several things that could be a consideration for investors to invest in Indonesia.

“We are quite well supported by BKPM (Investment Coordinating Board). However, we see that compared to other countries, they seem more favorable (due to) the consistency of regulations,” said Luther T. Panjaitan, Head of Public & Government Relations at PT BYD Motor Indonesia, on the sidelines of the Energy Insight Forum in Jakarta, Monday (02/06).

Luther revealed that the current government policies are quite beneficial and fair to manufacturers.

Photo : KatadataOTO

For example, cars that are still imported can participate in the subsidy program as long as they have an investment commitment and carry out production, according to the number of domestic sales.

However, its implementation needs to be consistent and long-term, providing certainty for investors and proving to make consumers more interested.

“I’ll take Thailand and Vietnam as examples. If we look, Thailand's development is more significant, 32 percent (market share) xEV, meaning EV (Electric Vehicle) and hybrid,” said Luther.

Flexible investment requirements are considered an attraction for investors to enter a particular country.

Regardless, Luther emphasized that the development of EV-supporting policies in the country continues to evolve and supports manufacturers in presenting environmentally friendly vehicles.

“In 2021 there was an import duty program, TKDN (Local Content Level), until 2025 there is a VAT and luxury goods tax reduction. BYD sees this as a good initiative from the government, because it is a fair starting point,” Luther affirmed.

Photo : BYD

For your information, BYD is currently utilizing the import incentive program launched by the government. 

BYD's electric car lineup is sold at competitive prices ranging from Rp 300 million to Rp 700 million, even though they are still fully imported.

Their assembly facility is still under construction in Subang, West Java, with a production capacity of 150,000 units per year. The total investment is said to reach Rp 11.7 trillion.