Indonesia has set a guideline for electric vehicle development through the Industry Minister's Regulation No.27 of 2020.
Jakarta (ANTARA) - Indonesia has accelerated the development of electric vehicles (EV) through the preparation of an EV advancement roadmap, provision of incentives, and creation of an EV ecosystem in the country, Industry Minister Agus Gumiwang Kartasasmita has said.

"Indonesia has set a guideline for electric vehicle development through the Industry Minister's Regulation No.27 of 2020 regarding Technical Specifications, EV Roadmap, and Calculation of Local Content Levels," he noted in Jakarta on Wednesday.

The roadmap has been set until 2030, he said adding, the government is targeting to manufacture 600 thousand four-wheeled and 2.45 million two-wheeled vehicles during the period.

It is estimated that the purchase of four or more wheeled vehicles would touch 132,983 units, while that of two-wheeled vehicles would hit 398,530 units, he informed.

"The production of electric vehicles is expected to reduce CO2 emissions of four or more wheeled vehicles by 2.7 million tons and two-wheeled vehicles by 1.1 million tons," the minister added.

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While promoting the use of EVs, the government will set regulations for consumers to purchase units through government agencies, Kartasasmita said.

The government is also providing several fiscal and non-fiscal incentives to consumers, including a zero percent Value Added Tax on Luxury Goods through Government Regulation No.74/2021, a low interest rate for purchase of electric vehicles through Bank Indonesia Regulation No. 22/13/PBI/2020, as well as several provincial government regulations, he added.

“Meanwhile, producers can take advantage of various benefits such as tax holidays, mini tax holidays, super tax deductions for R&D activities, and other conveniences," he said.

The agreements secured by the ministry during a meeting with the principals of the automotive industry in Japan in March, 2021 have shown that Indonesia is still the main destination for investors in the motor vehicle industry, Kartasasmita said.

The Industry Ministry has obtained a new investment commitment to the tune of Rp28.3 trillion for 2024 from Toyota Motor Corporation, he informed.

Meanwhile, Honda Motor Company has committed to investing Rp5.2 trillion, Suzuki Motor Corporation Rp1.2 trillion, and Mitsubishi Motor Corporation Rp11.2 trillion until 2024, he added.

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Translator: Risbiani Fardaniah, Uyu Septiy
Editor: Yuni Arisandy Sinaga
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