SAIC Urges Ministry of Industry to Extend Electric Vehicle VAT Incentive
11 October 2025, 09:00 WIB
Official Government Vehicles Now Must Have 25 Percent Local Content
President Prabowo Subianto enacted a new regulation concerning the Local Content Requirement for operational vehicles for official purposes.
- Wednesday, 07 May 2025 | 11:22 WIB
KatadataOTO – To encourage the use of domestic products, the government has inaugurated a new regulation concerning TKDN (Tingkat Komponen Dalam Negeri or Domestic Component Level).
Conveyed through the Minister of Industry, the regulation is stipulated in Presidential Regulation (Perpres) Number 46 of 2025. It is hoped that this will protect domestic industries.
It is further detailed in Article 66 paragraph 2a that domestic products used must have a TKDN of at least 25 percent.
This applies to ministries, agencies, regional apparatus, and other institutions.
Photo : Antara
So, referring to the new regulation from the president, the procurement of goods, including operational vehicles for official purposes, must meet the 25 percent TKDN requirement.
However, if the specified domestic product is not available, an alternative listed in the national industrial information system may be used.
This provision is also implemented while still considering the capabilities of the domestic industry.
According to a statement from the Ministry of Industry, Presidential Regulation Number 36 of 2025 was signed by President Prabowo Subianto last week and will take effect starting April 30, 2025.
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