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Indonesia has introduced new regulations to provide tax incentives for the import of fully assembled electric vehicles until 2025 to manufacturers planning to build electric vehicle factories in the country.
The regulation was signed on December 8 and removes import duties and luxury goods sales tax to encourage investment in electric vehicles. Companies that have invested in electric vehicle factories, plan to increase investment or have plans will receive incentives. Companies can import vehicles based on the scale and progress of factory investment, but they need approval from the Ministry of Investment.
The move is part of Jakarta’s drive to attract more investment and help propel Indonesia into Southeast Asia’s largest electric vehicle market. The regulations also delay deadlines for local content thresholds and electric vehicle production requirements. The Indonesian government has ambitious plans to produce 600,000 electric vehicles by 2030.
(Source: Reuters Image source: freepik)
