Jakarta, huutoanland Indonesia
—
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that he would not extend the validity period of the incentives
electric car
to 2026. This incentive budget is said to be transferred to the national car program.
He explained that this decision was an effort to revive the domestic automotive industry.On the other hand, providing incentives is part of the government’s plan to attract investment from automotive manufacturers.
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Apart from that, according to Airlangga, the incentive period expires on December 31 2025 and will no longer be extended to the following period because the government is focusing on producing national cars.
“Where are we going to divert the electric car incentive budget? Of course we have a national car plan (focusing on national cars), so that we can actually learn from VinFast,” said Airlangga in Subang, West Java, as reported by
sec
, Tuesday (16/12).
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The electric car incentive that will not be extended is the provision of zero percent import duty, from the supposed 50 percent, for imports of completely built up (CBU) units.
There are six companies that have participated in this since it opened in February 2024, namely BYD Auto Indonesia (BYD), Vinfast Automobile Indonesia (Vinfast), Geely Motor Indonesia (Geely), Era Automotive Industry (Xpeng), National Assemblers (Aion, Citroen, Maxus and VW) and Inchape Indomobil Energi Baru (GWM Ora).
One of the conditions for getting this incentive is that each manufacturer is required to produce electric cars domestically according to the applicable Domestic Component Level (TKDN) in the same quantity as the number of CBU imports.
The production obligation period for these six producers is from January 1, 2026 to December 31, 2027. If they do not comply, the government can claim a Bank Guarantee to pay the program participants’ production debts.
Airlangga continued that for automotive manufacturers who have experienced electric vehicle incentives from the government, now is the time to answer their promise to build factories in Indonesia.
“The government has provided various incentives, so they just have to do it (set up a factory),” said Airlangga.
“Existing, and VinFast can do both (investing and building a factory). So others (other electric car manufacturers), who don’t have factories but enjoy incentives, should join in like VinFast,” he said.
(ryh/fea)
[Gambas:huutoanland Video]