The Ministry of Industry is studying providing incentives for all types of vehicles.

KatadataOTO – The Ministry of Industry has stated it is currently reviewing the possibility of providing incentives for all types of vehicles. This is because the government sees that achieving the Net Zero Emission (NZE) target cannot rely solely on EVs.

Therefore, the Ministry of Industry has issued various strategic regulations to accelerate the sales growth of electrified vehicles. One of these is by strengthening rules that require meeting the local component level (TKDN).

“Under these regulations, the automotive industry that meets the local purchase and TKDN provisions can obtain both fiscal and non-fiscal incentives. This is a strategic step in creating an independent automotive industry,” said Mahardi Tunggul Wicaksono, Director of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP) at the Ministry of Industry, as reported by Antara (20/05)

He also revealed that the government has prepared tax programs for companies that show a commitment to investing in Indonesia.

Photo : HMID

The forms are diverse, including exemptions from import duties (BM) and Luxury Goods Sales Tax (PPn BM) for completely built-up (CBU) electric vehicles.

Then there are also BM and PPnBM incentives for completely knocked-down (CKD) electric vehicles with a TKDN that is still below the roadmap's provisions.

Besides electric vehicles, the automotive industry that produces hybrid vehicles and is part of the low carbon emission vehicle (LCEV) program also receives a 3 percent government-borne PPnBM DTP incentive. This means gasoline-fueled cars like LCGCs can receive assistance from the government.

Tunggul emphasized that incentives are an important stimulus in building an integrated national electric vehicle ecosystem from upstream to downstream.

“We believe that with the synergy of regulations, incentives, and investment, Indonesia can become a major player in the future vehicle industry,” he asserted.

Photo : Toyota Astra Motor

Meanwhile, Kukuh Kumara, General Secretary of the Association of Indonesian Automotive Industries (Gaikindo), revealed that providing incentives can increase vehicle sales, as people who usually buy used cars will switch to new units.

Moreover, the program is not only for electric vehicles but also for hybrids. Even gasoline-fueled vehicles receive it.