Indonesia prepares road map on machinery industry development

Indonesia prepares road map on machinery industry development

Industry Minister Airlangga Hartarto after a discussion in Jakarta on Tuesday (20/8/2019). ANTARA/Mentari Dwi G/sh

Jakarta (ANTARA) - The Indonesian Ministry of Industry has prepared a road map on development of machinery industry in integration with the national policy on biofuel.

Industry Minister Airlangga Hartarto said the road map could be used as a guideline for producers as well as consumers to design their future business plan, including in strengthening technology.

"The framework is aimed at materializing a national machinery industry which has low carbon emission and environmental-friendly," Hartarto said in a discussion here on Tuesday.

He expressed hope that vegetable oil-based flexy fuel industry could grow on a par with electric and hybrid vehicles industry and other low carbon emission vehicles.

The ministry has proposed that as an incentive for consumers, luxury goods tax (PPnBM) for automotive would be set based on its carbon emission.

"Flexy engine is among the vehicles that will enjoy the incentive according to the Government Regulation no. 41/2013 on PPnBM," Hartarto remarked.

The revised regulation will provide an incentive of 8 percent of luxury goods tax for vehicles that use 100 percent of biofuel or B100, while the tax for vehicles that use fossil fuel is set at 10-15 percent.

The government has encouraged the use of B100 biofuel which has met the Euro 4 standard emission, for biodiesel, biogasoline, and aviation turbine fuel (avtur).

The ministry has applauded the Bandung Institute of Technology (ITB) for its research on green fuel production including palm oil-based green diesel, green gasoline and green avtur.