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Indonesia eyes 50,000 electric car sales this year as incentives roll out
Last year, 17,000 electric vehicles (EVs) were sold wholesale nationwide, according to the Association of Indonesian Automotive Manufacturers (Gaikindo).
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President, Joko “Jokowi” Widodo autographs a VinFast VF 5 EV SUV at the VinFast booth during IIMS 2024.
T
he government is hoping to triple domestic electric car sales this year to 50,000 units, banking on newly rolled-out incentives to boost the industry.
Last year, 17,000 electric vehicles (EVs) were sold wholesale nationwide, according to the Association of Indonesian Automotive Manufacturers (Gaikindo).
“If we can see 50,000 EV sales this year, I think that would be a plus,” said Rachmat Kaimuddin, undersecretary for transportation and infrastructure at the Office of the Coordinating Maritime Affairs and Investment Minister, as quoted by Antara.
Read also: Nickel plan sidelined as govt pushes EV market with new incentives
The government will allow any automaker planning to establish an EV plant in the country to import completely built-up (CBU) or completely knocked down (CKD) EVs without paying import duties or luxury goods value-added tax (VAT).
These incentives are available until the end of 2025, with the government hoping to jump-start the market before domestic production ramps up.
In February, the Finance Ministry issued two regulations outlining luxury tax exemptions for EV purchases and reduced VAT of 1 percent for four-wheeled EVs and electric buses, down from the previous 11 percent.
