
Jakarta, huutoanland Indonesia
—
Coordinating Minister for Economic Affairs
Airlangga Hartarto
reveal the reasons for not extending incentives
electric car
which has been running for the last two years.This decision was taken so that producers do not only rely on imports, but are encouraged to build their own factories in Indonesia.
“In fact, by stopping (running out), everything is on the road. The stimulus was given so they could build a factory. Now that they have built a factory, the entry cost structure is lower,” said Airlangga when met in Subang, West Java, Tuesday (16/12).
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
The Ministry of Industry (Kemenperin) previously stated that the incentives for imported completely built up (CBU) electric cars currently being enjoyed by six manufacturers would not continue or stop on December 31 2025 in accordance with applicable regulations.
This program, which is set to test the market for electric cars, offers incentives in the form of import duty (BM) of zero percent instead of 50 percent and PPnBM of zero percent instead of 15 percent.
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
Thus, the total tax paid by program participants to the central government for imported electric cars is only 12 percent from the supposed 77 percent.
So far there are six automotive manufacturers that have taken advantage of this program, 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).
However, this incentive, which has been in effect since February 2024, is not free.Manufacturers can import CBU on condition of submitting a ‘guarantee deposit’ and are then required to produce electric cars domestically according to the number of imports during the program period.
If not, you will be subject to a penalty through the bank guarantee scheme.Domestic production must be carried out in the period 1 January 2026 to 31 December 2027 by adjusting the Domestic Component Level (TKDN) road map.
Apart from building factories domestically, Airlangga also revealed another strategy behind ending incentives for electric cars.He said the government might divert the budget to develop national cars.
“In the budget, of course we have a national car plan (focusing on national cars), so that we can actually learn from VinFast,” said Airlangga.
(ryh/fea)
[Gambas:huutoanland Video]



