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View all search resultsGovt opts not to extend EV import incentives next year
The existing incentives consist of exemptions from import duties and luxury taxes for completely built-up battery electric vehicles (BEVs).
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People visit the booth of Chinese automobile manufacturer BYD during the Indonesia
International Motor Show (IIMS) in Surabaya, East Java, on May 29, 2024. The 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. (AFP/Juni Kriswanto)
T
he government has signaled that incentives for electric vehicle imports are unlikely to be extended when they expire at the end of this year.
Industry Ministry official Mahardi Tunggul Wicaksono said in a public forum on Monday that the government had not held any discussions regarding the incentives outlined in Investment Ministry Regulations No. 6/2023 and No. 1/2024.
“Until today, I can inform you all that there has been no meeting with any ministry or government agency about the continuation of this incentive. And thus we can assume that, because there has been no meeting or discussion, in accordance with the regulation, this incentive will end as scheduled,” Mahardi said, as quoted by Kompas.com.
The incentives consist of exemptions from import duties and luxury taxes for completely built-up battery electric vehicles (BEVs). They have been in place since February last year, with additional measures introduced under Finance Ministry Regulation No. 12/2025, which extended another incentive until the end of this year.
That incentive included a 10 percent value-added tax (VAT) exemption for EVs with at least 40 percent local content, with varying rates applied to buses.
Read also: Local EV production slumps amid imports
Mahardi said that six EV manufacturers had committed to increasing their investment in the country by Rp 15.5 trillion (US$952.5 million), with a combined production capacity of 305,000 units.
