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Govt to roll out red carpet for China's BYD with EV tax incentive
The government plans to offer a tax incentive for imported electric vehicles, but only for automakers that invest in Indonesia's EV industry.
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The logo of Chinese electric vehicle (EV) maker NIO adorns the window of a dealership outlet in Shanghai. The EV market is currently dominated by Chinese giants like Warren Buffett-backed BYD as well as smaller manufacturers like NIO. (Bloomberg/File)
T
he government has expressed its confidence about luring investment from one of the world’s biggest electric vehicle (EV) producers to build a factory in the country.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said on Thursday that Chinese EV giant BYD planned to build an Indonesian factory to assemble completely knocked down (CKD) cars.
In return, the government plans to allow the firm to import its vehicles under preferential terms in an impending regulation.
Luhut said the import tax for completely built-up (CBU) BYD cars would soon be slashed from 50 to zero percent as an incentive to facilitate the automaker’s entry to the domestic market.
“We expect the regulation to be issued this month. I think [BYD] will invest in Indonesia. Insya Allah [God willing], they will invest in us,” Luhut said on Thursday, as quoted by Tempo.
He added that the planned factory would take from months to years to build and in the meantime, BYD could sell its CBU EV models locally.
BYD did not immediately respond to The Jakarta Post’s request for comment.
