Government to Provide Incentives for Commercial Vehicles

KatadataOTO – To restore the national automotive market, which is currently struggling, the government has made various efforts. One of them is by providing incentives for environmentally friendly vehicles such as EVs and hybrids.

However, the Ministry of Industry is not stopping there. They plan to provide fiscal and non-fiscal incentives to spur the production development of commercial vehicles that can enter the green mobility phase.

“Indonesia is committed to not only being a market but also a major player in the global supply chain for commercial and environmentally friendly vehicles. Moreover, we have set the manufacturing sector's NZE for 2050, 10 years faster than the national target,” explained Agus Gumiwang Kartasasmita, Minister of Industry, in an official statement (11/06).

He also reminded automotive business players to increase the TKDN (Local Content Level) value in every production process as well as in the procurement of raw materials and components. This is because it can provide greater opportunities for companies to participate in government procurement of goods and services and to take advantage of various fiscal incentives.

Photo : Antara

“Therefore, achieving a high TKDN through increased added value and local supply can ultimately strengthen a company's competitiveness. Both in the domestic and export markets,” he added.

Taking Many Steps to Revive the Automotive Sector

It was previously reported that the Ministry of Industry has taken various measures to support growth in the automotive sector. One of them is by providing incentives for electric and hybrid vehicles in Indonesia.

In addition, they are also discussing TKDN reform as it aims to create a more supportive investment climate. It is hoped that this will make business activities in the country easier.

Photo : KatadataOTO

The government has also prepared various new strategies to protect investors from various challenges. This includes revising regulations that are considered to hinder manufacturers' development.

The government has also eased the TKDN amount for official vehicles. So that manufacturers who have committed to investing in Indonesia can compete fairly