Government Rakes In Rp 15 Trillion from BYD and Aion Investments

KatadataOTO – Many electric car brands are investing their money in Indonesia. Especially after the government provided a number of incentives.

For example, incentives for imported electric four-wheeled vehicles or Completely Built Up (CBU) units sold domestically.

However, this assistance is not given for free by the government. Because manufacturers are required to invest their money in Indonesia.

The Ministry of Industry (Kemenperin) has recorded at least nine electric car brands that have already invested.

Photo : BYD

All of them are enjoying incentives for imported electric cars. For example, BYD, Vinfast, Xpeng, Geely, and Great Wall Motor (GWM).

Investments also came from the PT National Assemblers group. Consisting of Citroen, Maxus, VW, and Aion.

“There is a total planned additional investment of IDR 15 trillion and a planned increase in production capacity of 305 thousand units,” said Mahardi Tunggul Wicaksono, Director of Maritime Industry, Transportation Equipment, and Defense Equipment (ILMATAP) of the Ministry of Industry in Jakarta some time ago.

As a reminder, the application for proposed incentives for imported electric cars ended on March 31, 2025. Meanwhile, the deadline for vehicle importation is this coming December 31.

Therefore, these electric four-wheeled vehicle manufacturers must start local production next year. Then, they must sell their products according to their total import quantity.

Furthermore, in 2028, the government will audit the conformity of production with the import numbers of Aion, Citroen, Xpeng, and others.

It should be noted that two companies are collaborating on assembly with local assemblers, namely Geely Motor Indonesia and Era Industri Otomotif (Xpeng).

Meanwhile, two companies are expanding their production capacity, namely National Assemblers and PT Inchcape Indomobil Energi Baru.

Meanwhile, BYD Auto Indonesia and VinFast Automobile Indonesia have chosen to build a new factory in Subang, West Java.