SAIC Urges Ministry of Industry to Extend Electric Vehicle VAT Incentive

KatadataOTO – The Ministry of Industry (Kemenperin) has just departed for China. There, they met with the leaders of Shanghai Automotive Industry Corporation (SAIC) Motor Corp.

In the Land of the Bamboo Curtain, the two parties discussed a number of matters. Especially regarding the electric car market in Indonesia.

Reporting from the official Kemenperin website on Saturday (11/10), SAIC Motor asked Kemenperin to continue the incentive in the form of a Government-Borne Value Added Tax (PPN DTP).

Applicable to Battery Electric Vehicles (BEVs) with fewer than 10 passengers. It is also intended for electric buses.

Photo : Courtesy

Then, SAIC also asked the Indonesian Government to expand the scope of the PPN DTP incentive for commercial electric vehicles.

Considering Wuling has already marketed the Mitra EV to consumers in the country. Therefore, they are asking for support from Kemenperin.

Not stopping there, SAIC also hopes to receive other support for the Wuling and MG product lines in Indonesia.

Including those that carry Hybrid Electric Vehicle (HEV), Plug-in Electric Vehicle (PHEV), and Range-Extended Electric Vehicle (REEV) technologies to be included in the LCEV category.

The Kemenperin representative accepted the proposal from the Chinese manufacturer. They stated they would consider it.

“The proposal for the continuation of the PPN DTP incentive and the expansion of the PPN DTP incentive's scope for commercial vehicles is currently under internal government discussion,” said Eko S.A Cahyanto, Secretary General of Kemenperin, on their official website, Friday (10/10).

For your information, the government did provide a PPN DTP incentive for electric cars some time ago.

This policy is stated in the Minister of Finance Regulation Number 12 of 2025. It is mentioned that not all four-wheeled electric vehicles can take advantage of this government assistance program.

Because there are several criteria that must be met. Such as a minimum Local Component Level (TKDN) of 40 percent.

If the above requirements are met, then electric cars and electric buses are entitled to receive an incentive of 10 percent of the selling price.

Photo : MG

So the VAT borne by the public when buying a BEV or an electric bus is only one percent.

A number of Wuling products have also taken advantage of the government's PPN DTP incentive. For example, the Air ev, BinguoEV, and Cloud EV.

Meanwhile, MG's electrification line has not missed out on this assistance either, such as the 4 EV and the ZS EV.