TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

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.

Yohana Belinda (The Jakarta Post)
Premium
Jakarta
Fri, September 15, 2023 Published on Sep. 15, 2023 Published on 2023-09-15T11:41:49+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Govt to roll out red carpet for China's BYD with EV tax incentive 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.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

BYD did not immediately respond to The Jakarta Post’s request for comment.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Govt to roll out red carpet for China's BYD with EV tax incentive

Rp 35,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 35,000

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.