According to Roeslani, the higher the TKDN fulfilled by EV manufacturers, the greater the incentive they will get.
"So, the concept will be changed, with a higher TKDN, we will provide a greater incentive. So, we are going to take a more positive approach to TKDN going forward," the minister announced in Jakarta on Tuesday.
Currently, seven EV manufacturers have set up production facilities in Indonesia: VinFast, Volkswagen (VW), BYD, Citroen, AION, Maxus, and Geely.
The seven EV makers have invested a total of Rp15.4 trillion (about US$938 million) to produce 281 thousand EVs per year.
Related news: Tax incentive aims to push electric vehicle use: Hartarto
"So, those are the ones that have started declaring relocation and are starting to operate," Roeslani informed.
Furthermore, he said that Indonesia already has the entire ecosystem for EV batteries. With more people switching to electric vehicles, the government's net-zero emissions target will be achieved faster.
He noted that to meet the target of producing 2.5 million EV units annually by 2030, a capable ecosystem is needed, including charging stations.
Therefore, the government has revised its regulation to allow third parties to build EV charging stations.
"Therefore, we have revised one of the government regulations on how charging stations can be carried out by third parties so that it can spread quickly throughout Indonesia," Roeslani said.
He also asked investors who wish to invest in Indonesia to conduct research and development related to electric vehicles.
The government, on its part, will offer incentives of up to 300 percent if investors are willing to conduct research and development activities.
Related news: Indonesian govt to offer incentives for hybrid cars amid EV push
Translator: Kuntum Khaira Riswan
Editor: Rahmad Nasution
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