The Government of Indonesia has announced plans to advance the development of electric vehicles (EV) through the release of an EV development roadmap, providing customer incentives, and establishing an EV ecosystem in the country. The Technical Specifications, EV Roadmap, and Calculation of Local Content Levels standards was established under the Minister of Industry’s Regulation No.27 for 2020. The roadmap has been set for a period upto 2030. The Indonesian government has also announced plans to produce 600,000 four-wheeled cars and 2.45 million two-wheeled vehicles over this time period.
The Government will introduce regulations for consumers to allow purchase of EVs through government agencies. EV buyers will also benefit from a zero per cent value added tax (VAT) on luxury goods under Government Regulation No.74/2021, a lower interest rate for the purchase of EVs under Bank Indonesia Regulation No. 22/13/PBI/2020, as well as additional incentives from the regional government.
